U.S. Push Could Lower GLP-1 Prices, Boost Lilly, Novo Sales

Shares of Eli Lilly and Novo Nordisk climbed Thursday as investors reacted to a potential White House initiative aimed at lowering the cost of blockbuster weight-loss treatments while broadening access through Medicare and Medicaid programs.

The move targets GLP-1-based drugs, with Novo’s Wegovy and Lilly’s Zepbound dominating the U.S. market. Currently sold primarily as weekly injections, these medications have list prices exceeding $1,000 per month, although both companies offer cash buyers a $499 monthly supply.

While Novo was first to market, Lilly’s Zepbound is quickly gaining ground, with a rapidly expanding patient base. Analysts suggest the pricing framework under discussion could disproportionately benefit Lilly, strengthening its lead in the U.S. weight-loss segment.

The initiative is part of a broader government effort to make prescription drugs more affordable. By reducing reliance on traditional pharmacy benefit managers, the plan aligns with Trump administration goals to lower drug costs and improve patient access. Drugmakers including Pfizer and AstraZeneca have joined similar programs under the direct-to-consumer channel, known as TrumpRx.

Market watchers note that a monthly price cap—potentially around $150—could make these treatments accessible to millions of Americans, particularly those hesitant to take injectable medications. Lilly is also preparing to launch an oral GLP-1 pill, Orforglipron, which could further expand its market share. Novo’s oral Wegovy is under FDA review, with a decision expected by late 2025.

With both companies racing to introduce oral alternatives, the landscape of U.S. obesity treatments may shift dramatically, offering broader patient access while fueling competition in a high-demand market.