Novo Nordisk, Eli Lilly Cut GLP-1 Prices for Expanded Medicare Market Access

Novo Nordisk and Eli Lilly have entered an agreement with the U.S. administration to reduce prices of their GLP-1 weight loss drugs in exchange for expanded Medicare and Medicaid coverage.

Starting next year, select GLP-1 drugs including Ozempic, Wegovy, and Zepbound will be offered at approximately $350 per month on a new government-run online marketplace known as TrumpRx, significantly lower than current prices that can reach up to $1,000 per month.

This price is expected to further decline to around $245 in the coming years. Both companies are also setting starter prices for anticipated oral GLP-1 drugs at about $149 per month, pending FDA approval with Novo Nordisk expected to launch first in early 2026. The expanded coverage could affect about 10% of the 66 million Medicare beneficiaries, particularly those with overweight or obesity conditions and related diseases. State Medicaid programs may also utilize discounted pricing, easing out-of-pocket costs for Medicaid patients. As part of the deal, Novo and Lilly receive a three-year tariff reprieve contingent on increased U.S. manufacturing and FDA priority review vouchers for the oral drugs.

Additionally, the companies will reduce cash prices for other drugs and apply most-favored-nation pricing for future products. This agreement represents a strategic shift, balancing price reductions with wider patient access and volume increases in the GLP-1 market. It underscores a growing focus on regulatory negotiations influencing drug pricing and market access, particularly under evolving government healthcare programs. The deal may accelerate the use of GLP-1 treatments, currently used by an estimated 6% to 12% of Americans, reflecting significant market growth potential fueled by policy and pricing changes.