• Source: www.reuters.com

Eli Lilly and Co. and Novo Nordisk A/S are close to agreements with the White House to lower prices for their obesity drugs in exchange for Medicare coverage, according to a White House source. The deals could be announced as early as Thursday during an event with President Donald Trump and pharmaceutical executives.

The potential agreements would mark a significant step in expanding access to popular weight-loss medications while addressing the high cost of prescription drugs in the United States. Americans currently pay nearly three times more for medicines than patients in other developed countries, a key issue that the Trump administration has sought to address through direct negotiations with drugmakers.

Pricing and Medicare Coverage

Under the proposed arrangements, Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy would be offered at reduced prices for lower-dose versions of the Obesity Drugs. Endpoints News reported that both companies plan to set the starting dose price at $149 per month. In return, the drugs would gain access to Medicare, the federal insurance program for people aged 65 and older or those with disabilities.

The Wall Street Journal, citing people familiar with the matter, reported that Lilly’s Zepbound would also be sold at $299 for a higher starting dose, roughly $50 less than the company’s current direct-to-consumer price. The reports suggest that the administration’s new plan, called TrumpRx, could include sales of these discounted doses through a government-linked platform.

White House spokeswoman Karoline Leavitt said the administration remains committed to lowering drug prices but declined to confirm any upcoming announcements. “I won’t get ahead of the president on any future announcements,” she said during a briefing. “We’re working with pharmaceutical companies every day to bring down drug prices in this country.”

Industry and Government Negotiations

A spokesperson for Novo Nordisk said the company is in “constructive discussions” with the administration concerning the “most-favored-nation” executive order, which seeks to align U.S. drug prices with those in other developed nations. Lilly has not yet commented on the reports.

The anticipated deals follow similar agreements by other pharmaceutical firms. In September, Pfizer became the first company to reach a pricing arrangement with the Trump administration, agreeing to lower Medicaid drug prices to international levels in exchange for tariff relief. AstraZeneca signed a comparable agreement in October.

Medicaid, a joint federal and state program, provides healthcare coverage to low-income individuals and families. The new arrangements under consideration would extend similar pricing structures to Medicare, significantly increasing access for older adults.

Broader Policy Context

The administration’s ongoing efforts to tie U.S.Obesity Drug costs to global benchmarks are part of a broader initiative to reduce consumer expenses on prescription medications. Trump has repeatedly said drugmakers should offer “most-favored-nation” pricing on new products launched in the country.

If finalized, the Lilly and Novo deals could open the door for broader coverage of anti-obesity treatments, which have surged in popularity due to their effectiveness in managing weight and related conditions such as diabetes. Industry analysts suggest that Medicare coverage could dramatically expand the market, making the drugs more accessible to millions of Americans.

The White House has not provided further details on the timing or terms of the potential announcements. However, reports indicate that the president may outline the agreements during a scheduled address at the White House on Thursday morning, alongside executives from several major pharmaceutical companies.

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