Trump Strikes Deal With Lilly And Novo To Offer “Drastic Discounts” On Weight-Loss Drugs

Eli Lilly & Co. and Novo Nordisk A/S struck a deal with the Trump administration to offer their blockbuster obesity drugs at lower prices in exchange for tariff relief and expanded Medicare access. The announcement was made in the Oval Office early this afternoon, where President Trump told reporters, “I call it the fat drug … we’re offering it at drastic discounts.”

Happening Now in the Oval Office with a behind the scenes view—President Trump: “Pharmaceutical companies @EliLillyandCo and @NovoNordisk have agreed to offer their most popular GLP-1 weight loss drug, I call it the fat drug…at drastic discounts…” LIVE @WhiteHouse @X! pic.twitter.com/3uJVTP96Ah

— Dan Scavino (@Scavino47) November 6, 2025

Here are the key terms of the deal:

• Medicare Coverage Expansion: In 2026, Medicare and Medicaid patients with obesity plus another condition (such as prediabetes or heart failure) will gain access to Lilly’s Zepbound and Novo’s Wegovy at sharply reduced prices, about $245/month list price, with a $50 Medicare co-pay.

• Cash-Pay Discounts: Lilly will offer Zepbound for $299/month via LillyDirect; Novo will sell Wegovy for $499/month through NovoCare, down from current list prices above $1,000.

• In return for the discounts, the Trump administration offered both drugmakers a three-year exemption from upcoming duties on imported pharmaceuticals. 

• Both pharma companies’ oral versions of the drugs will receive accelerated FDA review; the lowest-dose pills will cost $149/month once approved.

$LLY Lowest Dose Of Zepbound Will Be Available To Cash Payers For $299, Additional Doses At $449 Per Month Under Deal -Statement
– Lower Prices Will Apply To Its Experimental Orforglipron Pill If It Is Approved
– Will Add Diabetes Medicines Emgality, Trulicity And Mounjaro To…

— LiveSquawk (@LiveSquawk) November 6, 2025

What the heads of the pharma companies are saying:

• Novo CEO Mike Doustdar called the deal a step toward affordable access; Lilly CEO Dave Ricks hailed it as “a pivotal moment in US health-care policy.” Both pledged to manufacture future pill versions in the U.S. market.

In markets, Novo ADR shares initially rose on news of the White House drug deal before giving up most of those gains, while Lilly shares fluctuated and eventually turned lower.

For investors tracking the next wave of obesity-drug catalysts, Goldman analysts have outlined the key milestones to watch through year-end (see full report).