Trump Strikes Major Deals with Eli Lilly and Novo Nordisk to Cut Weight-Loss Drug Costs

On November 6, 2025, the White House announced a landmark agreement with two of the world’s largest pharmaceutical companies — Eli Lilly and Novo Nordisk — aimed at dramatically lowering the out-of-pocket cost of popular GLP-1 weight-loss drugs and expanding who can get them through public programs. The move, unveiled by President Donald Trump at an Oval Office event, ties lower list prices and new discounts to wider coverage under Medicare and targeted measures for the uninsured — all wrapped into the administration’s broader drug-pricing push.

This story matters because the medicines involved — drugs like Wegovy, Zepbound and related semaglutide/GLP-1 treatments — have transformed obesity care in recent years. They can produce substantial weight loss for many patients but have also been prohibitively expensive for most Americans, frequently costing several hundred to more than a thousand dollars per month. The White House deal seeks to change that calculus, with implications for health care spending, drugmakers’ business models, and the politics of prescription prices ahead of a high-stakes U.S. election year.

What the deal actually says (the headline terms)

While the administration released a flurry of details at the announcement, the core elements are simple:

• Discounted monthly prices. For certain doses and channels, the companies agreed to substantially lower prices — with starting monthly prices reported in the range of $149 to $299–$350, depending on dosing and whether a patient is buying through the new TrumpRx direct-to-consumer portal or through insurance. Some reporting said $149 for the lowest doses; other published figures for insured patients ranged up to $245–$350 depending on dose and program.
• Medicare coverage expansion. The administration said Medicare will begin covering some of these GLP-1 drugs for obesity in certain eligible beneficiaries, with co-pays as low as $50 for some patients under the plan. That represents a major expansion because historically Medicare has limited coverage of these drugs for weight-loss indications.
• TrumpRx sales channel. The administration’s planned TrumpRx website — a direct purchasing portal the White House has promoted — will carry the discounted cash prices for eligible buyers, further lowering self-pay costs for uninsured or under-insured people. Officials said TrumpRx could make injectable GLP-1s available at discounted monthly prices and that pill versions, if approved, may be offered at lower price points as well.
• Medicaid pilots and broader state coverage. The announcements included plans to extend coverage in some Medicaid programs through pilot programs, opening the path for lower-income Americans on state Medicaid rolls to access GLP-1 treatment for obesity in targeted circumstances.

Those bullet points summarize the immediate, publicized terms. Several outlets also reported that companies agreed to other concessions — such as expanded access to lower doses, changes to direct-to-consumer pricing, and in some accounts, expedited regulatory or coverage discussions — though those specifics vary across reports and may be subject to later clarification or implementation steps.

Which drugs are involved

The deal centers on leading GLP-1 drugs produced by the two companies:

• Novo Nordisk: best known for Wegovy (semaglutide) and the diabetes medicine Ozempic (also semaglutide), which has been widely repurposed for weight loss in practice.
• Eli Lilly: maker of Zepbound (tirzepatide) and other GLP-1 peptides, which have also shown strong weight-loss effects in clinical use.

The companies’ blockbuster GLP-1 franchises have driven enormous growth — and scrutiny — in the pharmaceutical sector over the past two years, creating supply pressures, widespread media attention and an intense public debate over pricing and access. This deal marks one of the most consequential public-private responses to those pressures to date.

Why this is a big deal for patients

For many Americans, the announcement could translate into substantially lower monthly costs and easier access:

• Cheaper cash prices for the uninsured. Self-pay prices advertised through TrumpRx and company portals could drop to a few hundred dollars per month for some doses, versus prior out-of-pocket costs that often exceeded $500–$1,000 monthly for sustained treatment. That will directly help people who pay cash or who face high deductibles.
• Lower co-pays for Medicare beneficiaries. Extending Medicare coverage — even if initially limited to certain groups — removes a major barrier for older Americans or disabled beneficiaries who historically had limited access to GLP-1s for obesity. The administration said co-pays could be as low as $50 for eligible beneficiaries.
• Potential Medicaid pilots. If states take up pilot coverage under the new framework, lower-income patients may gain access without the same financial barriers they faced previously.

Clinicians and patient advocates have long argued that obesity is under-treated because of cost and stigma; lowering the price and expanding coverage could shift treatment patterns, with public-health implications for diabetes, heart disease and joint conditions linked to excess weight. That said, experts caution that medicines are only one piece of obesity prevention and management.

Reactions from companies, health experts, and critics

Companies: Both Novo Nordisk and Eli Lilly issued statements acknowledging the deal and saying they would make changes to pricing and distribution consistent with the White House agreement. Market reaction was mixed but generally muted; investors had been bracing for some form of negotiated pricing pressure. Reuters and Bloomberg noted that the companies had already been engaged in negotiations with U.S. officials and that the deals were partly expected.

Health experts: Many public-health specialists and clinicians welcomed moves to reduce financial barriers to effective therapy. They pointed out that increased access could prevent diabetes and cardiovascular events for some high-risk patients. But they also emphasized that medications are not a panacea: long-term care, behavioral support, equitable access, and attention to root causes of obesity (food environments, socioeconomic factors) remain essential.

Critics and skeptics: Several observers raised concerns about the political optics and details:

• Short-term political gain. Some saw the announcement as a high-visibility win for the administration ahead of elections, noting the strongly populist appeal of cutting prices on a high-profile consumer product. Media accounts flagged the announcement’s timing and presidential messaging.
• Implementation and scope. Analysts asked for clarity on who exactly will be eligible under Medicare or Medicaid pilots, how many patients will qualify, and whether the cuts cover only the lowest doses or the full range of therapies. There are also questions about long-term affordability if patients need ongoing treatment for years.
• Industry tradeoffs. Because the GLP-1 drugs deliver both clinical benefit and significant revenue, analysts cautioned that companies may accept narrower margins in exchange for broader volume and stable market access — but that could influence R&D decisions, future pricing strategies, and international pricing dynamics.

What this means for federal budgets and health care costs

Lowering drug prices for millions of beneficiaries could both increase utilization (more people start treatment) and reduce downstream costs (fewer obesity-related complications), creating a complicated fiscal picture:

• Short-term costs vs long-term savings. If millions begin GLP-1 therapy, government prescription spending may rise in the near term; but some economists argue that preventing heart attacks, diabetes progression and other costly outcomes could offset those costs over years. The net effect depends on who receives treatment, for how long, and whether drugs are used alongside comprehensive care.
• Medicare negotiation leverage. By tying price reductions to guaranteed coverage and predictable demand, the government gains leverage to push prices down in exchange for volume. Pharma companies benefit from a large, predictable payer — a trade often encountered in drug-pricing deals globally.
• Fiscal transparency questions. Critics will likely press for detailed actuarial estimates: how many beneficiaries are expected to use GLP-1s under the new policy, what the gross and net costs will be to Medicare and Medicaid, and how savings from avoided complications will be measured and realized. Those numbers were not fully disclosed at the announcement.

The regulatory and marketplace context

This announcement doesn’t occur in a vacuum. It follows years of intense activity around GLP-1s:

• Rapid uptake and shortages. As demand exploded after clinical trials and high-profile coverage, some products experienced supply tightness and long waiting lists. That history shaped public anger over price and access.
• Ongoing IRA negotiations and pricing pressure. Novo Nordisk, in particular, has been part of broader U.S. drug-price negotiations under the Inflation Reduction Act (IRA). Recent company disclosures have signaled the firm was prepared for negotiated price outcomes, which influenced investor expectations going into this agreement.
• New formulations and pills. Drugmakers are developing oral GLP-1 formulations and new molecules; the White House described potential lower-cost pill versions (if approved) that could be sold at still-lower monthly prices, changing the delivery model for obesity treatment. But pills must still clear FDA review and commercial scaling before they become a widespread low-cost option.

What to watch next

The announcement sets in motion a series of implementation milestones and questions to monitor:

1. Official implementation timeline. Reports indicate discounts and coverage changes will phase in over months — watch for the government’s technical guidance and company pricing notices.
2. Eligibility rules. Which Medicare beneficiaries qualify (e.g., BMI thresholds, comorbid conditions) and how states design Medicaid pilots will determine the practical reach of coverage.
3. TrumpRx rollout. The operational details, enrollment process, and verification for the TrumpRx portal will matter for people seeking to buy at cash-discounted prices.
4. Clinical guidance and primary-care capacity. If demand surges, primary-care clinicians and weight-management programs must be ready to safely prescribe and manage therapy, including monitoring side effects and coordinating lifestyle support.
5. Political and legal pushback. Expect scrutiny from congressional oversight, state regulators, and civil-society groups regarding pricing, access, and long-term impacts — particularly as the issue becomes a focal point in political debates.

Bottom line

President Trump’s agreements with Eli Lilly and Novo Nordisk mark a significant and unprecedented intervention in the GLP-1 weight-loss drug market: large manufacturers will offer sharply lower prices in exchange for wider market access and the political cover of a high-profile White House deal. For many patients, the immediate promise is lower cash prices and more generous Medicare coverage for some eligible beneficiaries — potentially removing a substantial economic obstacle to effective obesity treatments.

But the announcement is only the first chapter. The ultimate public-health and fiscal outcomes depend on how eligibility is defined, how programs are administered, whether demand surges can be managed safely, and whether long-term care strategies beyond pharmaceuticals are funded and implemented. Observers will be watching enrollment figures, federal spending estimates, and clinical outcomes closely as this ambitious experiment unfolds.