President Donald Trump announced Thursday that his administration has reached an agreement with pharmaceutical giants Eli Lilly and Novo Nordisk to substantially reduce the price of GLP-1 medications, a class of drugs widely used for weight loss and Type 2 diabetes. The move represents one of the most significant interventions in prescription drug pricing in recent U.S. history, and experts say the direct negotiations behind it are largely unprecedented.
Under the new pricing structure outlined by Trump, Eli Lilly’s Zepbound will cost $346 per month, down from $1,080. Novo Nordisk’s Wegovy will drop to $250 per month, down from $1,350. Both companies also agreed that once oral GLP-1 drugs currently in development reach the market, they will cost no more than $149 per month.
The administration also secured commitments from the two manufacturers to sell all of their medications to state Medicaid programs at the same “most-favored-nation” price received by the lowest-paying developed country. Additionally, Eli Lilly will invest $27 billion and Novo Nordisk $10 billion in U.S. manufacturing expansion.
The announcement builds on earlier agreements with Pfizer, AstraZeneca, and EMD Serono to either offer direct-to-consumer prices or lower Medicaid costs. It also follows the administration’s rollout of TrumpRx, a planned platform to allow Americans to purchase discounted medications directly from pharmaceutical companies.
During the Oval Office announcement, Trump emphasized the financial burden American patients face. “The United States is just 1% of the world’s population and consumes only 13% of all prescription drugs yet pharmaceutical companies make 75% of their profits from American customers,” he said.
According to the Department of Health and Human Services, Americans pay nearly three times more for prescription medications than consumers in other developed nations. While many GLP-1 drugs are covered by insurance for diabetes treatment, coverage is inconsistent or absent for their use in weight loss, placing much of the cost on patients.
GLP-1 Drugs and the Debate Over Obesity Treatment
GLP-1 medications were originally approved for diabetes in 2005, and later for weight management in 2014. They work by stimulating insulin production after meals and reducing appetite through hormonal pathways. The drugs have soared in popularity due to their effectiveness in promoting weight loss, but their high price has limited access.
Within the administration, perspectives on how widely these drugs should be used have varied. Dr. Mehmet Oz, who oversees Medicare and Medicaid, has supported expanding coverage, calling the medications “massively beneficial.” Meanwhile, Health and Human Services Secretary Robert F. Kennedy Jr. has emphasized a balanced approach that prioritizes lifestyle intervention first. On Thursday, he said that making GLP-1 drugs more affordable “will allow a lot of people who are locked into high-risk obesity to finally lose weight, to reset and then start doing the kind of things that will address the root causes of obesity.”
Officials pointed to wide-scale health impacts, with Oz saying the changes will help Americans lose “135 billion pounds” collectively.
A System Under Pressure
Unlike most wealthy nations, the United States does not negotiate drug prices at the national level. Instead, prices are shaped through multiple layers of private insurance, pharmacy benefit managers, and varying rebates, creating significant price differences between patients and insurers and between the U.S. and other countries.
Pharmaceutical companies have historically argued that higher American drug prices fund research and innovation. But as GLP-1 medications become some of the highest-selling drugs in the world, pressure has grown to expand access and lower cost.
The administration’s deals directly target the system’s pricing structure by tying U.S. prices to the lowest prices abroad — a strategy drugmakers have resisted for decades.
Whether the agreement will face legal or political challenges remains to be seen. However, the price cuts immediately shift the landscape for millions of Americans seeking treatment for obesity and diabetes and could signal a broader shift in how the U.S. approaches drug affordability.
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