Trump deal reduces prices for popular weight‑loss medications in US
What's the story
Eli Lilly and Novo Nordisk have struck deals with the Trump administration to reduce the prices of their popular weight-loss drugs, Zepbound and Wegovy. The agreement was revealed at a White House event hosted by President Donald Trump. It will allow more people on Medicare, the government health plan for older Americans, to access these life-saving medications.
Tariff exemption
Eli Lilly, Novo Nordisk exempted from Trump's drug tariffs
As part of the deal, Eli Lilly and Novo Nordisk's drugs will be exempted from Trump's upcoming tariffs on pharmaceutical imports for three years. This is similar to the terms agreed upon by their competitors in previous drug-price negotiations. "It's a triumph for American patients that will save lives and improve the health of millions and millions of Americans," Trump said while announcing the deal.
Coverage expansion
Medicare to cover weight-loss drugs for the first time
Traditionally, Medicare has not covered drugs meant solely for weight loss. However, starting next year, a wider population will be able to buy Lilly's Zepbound and Novo's Wegovy at $245 a month. The co-pay for Medicare patients is $50 per month. At current prices, the drugs cost more than $1,000 a month. Trump's move comes days after Democrats defeated Trump's Republican Party candidates in off-year elections where cost of living was a key issue.
FDA approval
Fast-tracked reviews for new drugs
As part of the agreement, Lilly will get a fast-track review for its upcoming weight-loss pill while Novo will get a faster review for a higher-dose injection. The voucher Lilly received will shorten the approval time for its pill, orforglipron, to weeks instead of a year-long process. If approved by March, the lowest dose of this pill could be priced at a more affordable $149/month.