Eli Lilly & Novo Nordisk To Reduce Obesity Drug Prices After US Deal

Pharmaceutical giants Eli Lilly and Novo Nordisk have agreed to slash prices of their obesity-treatment drugs, such as Zepbound and Wegov,y following a deal with the US administration, marking a major shift in how such therapies will be priced and covered in one of the world’s largest markets, as per the news reports.

Key Development

Starting next year, Medicare will be allowed to cover these weight-loss drugs for a broader population, including people who are overweight and have prediabetes. Under the revised pricing, patients will be able to access Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy for $245 per month, with Medicare beneficiaries required to pay a $50 monthly co-pay. 

Through Lilly’s direct platform, LillyDirect, Zepbound will be priced $50 lower than its current rate, while Novo will make Wegovy available for $499 per month through its NovoCare programme.

As part of the deal, both companies will receive a 3-year exemption from forthcoming US import duties, a benefit that has been offered to other manufacturers under separate price-reduction agreements.

Statements from Eli Lilly, Novo Nordisk and the Administration

Lilly CEO Dave Ricks said that around 8–9 million Americans currently use GLP-1 drugs, but expanded Medicare eligibility could increase the pool to as many as 40 million people. 

Novo CEO Mike Doustdar emphasised that access to life-changing medicine should not be a privilege, highlighting the importance of affordability.

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Conclusion

Through reduced pricing and expanded Medicare eligibility, Eli Lilly and Novo Nordisk are set to bring their high-demand obesity drugs to millions more Americans, while securing regulatory and tariff benefits that support future growth.

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