Eli Lilly and Novo Nordisk cut prices of slimming drugs in the US
In return, the two companies will benefit from a three-year exemption from new tariffs on imported drugs
by Mo.D.
Key points
Agreement between Eli Lilly and Novo Nordisk with the Trump administration to drastically reduce the prices of their blockbuster weight-loss drugs, including Zepbound and Wegovy, in exchange for a temporary suspension of tariffs on pharmaceutical imports and expanded coverage by Medicare.
The agreement, announced yesterday during an event at the White House with President Donald Trump, will allow a larger number of Americans enrolled in Medicare, the public health programme for the elderly, access to some of the world's most sought-after medicines.
The two companies will benefit from a three-year exemption from new tariffs on imported drugs, similar to those already negotiated by other industry giants in previous price agreements.
The Medicare system
Traditionally, Medicare could not reimburse drugs exclusively for weight loss, only those for obesity associated with conditions such as heart disease or diabetes. Starting next year, however, overweight individuals with prediabetes will also be able to access Lilly's Zepbound and Novo's Wegovy at a price of $245 per month, with a $50 co-payment for Medicare patients.
The agreement with Eli Lilly
Lilly will offer its treatment at a price $50 lower than the current list through the direct-to-consumer platform LillyDirect. Lilly CEO Dave Ricks thanked Trump and the Department of Health for the deal: 'A drug is only effective if people can afford it. Today's announcement solves a real problem for millions of Americans'. According to Ricks, between 8 and 9 million people in the US already use GLP-1 drugs; with the extension of Medicare, the potential audience could rise to 40 million, prompting even private insurers to include them in their coverage.
