US President Donald Trump held a press conference on Thursday to announce a groundbreaking deal with pharmaceutical giants Eli Lilly and Novo Nordisk to lower the prices of weight-loss drugs.
Trump scored the concessions with the two pharma giants in exchange for providing them relief from US tariffs.
The move is the latest attempt by the Trump administration to tackle soaring drug prices in the US.
Already, pharmaceutical companies Pfizer and AstraZeneca have agreed to lower the cost of prescription drugs for Medicaid, after Trump signed an executive order in May setting a deadline for drugmakers to lower prices or face new limits on what the government will pay.
Eli Lilly and Novo Nordisk “have agreed to offer their most popular GLP-1 weight-loss drug,” Trump said at the White House, “at drastic discounts.”
The two firms are “committing to offer Zepbound and Wegovy at ‘Most Favored Nation’ rates for American patients,” he added.
Weight loss drugs popular in the US
The drugs produced by Eli Lilly and Novo Nordisk, known as GLP-1s, target hormones in the gut and brain that regulate appetite and feelings of fullness.
Patients new to the drug will generally start with smaller doses and then build up to larger doses, depending on the patient’s need. But experts say patients need to stay on the drug indefinitely or risk regaining weight.
The drug brands Ozempic, Wegovy and Mounjaro have risen sharply in popularity in the US.
Despite that popularity, they are considered unaffordable, as they can cost more than $1,000 (€866) per month.
How much cheaper will the drugs be?
Trump said his plan would lower the costs of products for those eligible.
US drug prices can vary based on the competition for treatments and insurance coverage, so it’s hard to predict exactly what the prices will be.
But under Trump’s plan, starting oral doses of GLP-1s are expected to come down to as low as around $150 for certain groups of people once approved, a senior US official said.
The costs for injectable versions of the drugs would be higher, at $245 for Medicare and Medicaid recipients meeting a certain criterion.
It does not mean that the lowest prices will be available to all Americans. The prices touted by the White House would apply to those on Medicare and Medicaid — safety net programs that provide health coverage to older Americans and those who are low income, respectively.
For all others, Trump is set to launch the direct-to-consumer website TrumpRx, a Trump official added.
“It’s a triumph for American patients that will save lives and improve the health of millions and millions of Americans,” Trump told reporters.
According to the US Centers for Disease Control and Prevention, obesity among American adults is estimated at over 40% or nearly half the population.
Edited by: Srinivas Mazumdaru
