President Donald Trump unveiled a major pricing and coverage deal with drug giants Eli Lilly and Co. (NYSE:LLY) and Novo Nordisk A/S (NYSE:NVO) on Thursday, pledging to make blockbuster weight-loss drugs like Zepbound and Wegovy significantly cheaper and accessible for millions of Americans.
The announcement, made during a White House press briefing, marks a potential game-changer in the escalating obesity treatment market.
Under the new deal, Medicare and Medicaid will begin covering obesity medications, including GLP-1 drugs – short for glucagon-like peptide-1 receptor agonists– starting in April 2026.
Patients will see monthly out-of-pocket costs ranging from $50 to $350, depending on dosage and insurance coverage — a sharp reduction from the $1,000-plus price tags many currently face.
Eli Lilly CEO Says ‘Turning Point’ In Obesity Fight
"This action today will really begin to change the arc of chronic disease in our country," Dave Ricks, CEO of Eli Lilly, said, adding that the reduced cost "opens up access for millions of Medicare beneficiaries."
He cited powerful results from Lilly's Zepbound (tirzepatide), noting its ability to reduce the progression from prediabetes to type 2 diabetes by 94% over three years and showing significant cardiovascular benefits in clinical trials.
Ricks also teased the arrival of Lilly's next-generation pill, orforglipron, a once-daily oral treatment that aims to improve patient convenience.
Maziar Mike Doustdar, CEO of the Danish-rooted Novo Nordisk, also highlighted the societal importance of expanding access.
"Access to life-changing medicine should not be a privilege," Doustdar said, calling the deal "a pivotal moment" and highlighting Novo's $24 billion investment in the U.S. over the past decade, which has generated over 10,000 jobs and $21 billion in GDP in 2024 alone.
He confirmed that Wegovy Plus, a new higher-dose formulation (7.2 mg of semaglutide), will also be part of the government agreement and emphasized that Novo's pills will be "made in America, by Americans, for Americans."
Investors Side With Lilly in Wall Street's Obesity Bet
While both companies are now locked into the same federal deal, Wall Street has made its preference clear: Eli Lilly has been the clear winner.
As of early November 2025, Lilly's stock is riding a six-day winning streak and up 20% year to date, boosted by strong demand for Zepbound and investor optimism over the drugmaker's pipeline of weight-loss and diabetes treatments.
Novo Nordisk, by contrast, is facing a bruising 47% selloff, fueled by investor concerns over slowing sales momentum, rising competition and recent product supply issues.
What's Next?
This deal is only the beginning. Trump's administration hinted at pushing private insurers, state governments and employers to expand access even further.
Both CEOs echoed that sentiment, with Ricks calling on stakeholders to join the effort and Doustdar stressing that no American should have to resort to "unapproved, compounded knockoffs."
While pricing is only part of the obesity epidemic puzzle, one thing is clear: the pharmaceutical war on weight-loss drugs is entering a new phase.
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