Trump’s Reductions in Drug Prices Ignite Innovation Discussion Amid Fiscal Strains

The administration of President Donald Trump has reached a significant agreement with

and to dramatically reduce the prices of widely used GLP-1 weight-loss medications, such as Ozempic and Wegovy, for patients covered by Medicare, Medicaid, and those paying out of pocket. Announced Thursday from the White House, this deal is the third major pharmaceutical pricing arrangement under the administration’s Most Favored Nation (MFN) initiative, following previous agreements with Pfizer and AstraZeneca, as reported by .

According to the agreement, the Trump administration will make these medications available via its TrumpRx direct-to-consumer platform, setting an average monthly price of $350 for both injectable and oral forms. This is a substantial reduction from the current monthly cost of $1,000 to $1,350 for Ozempic and Wegovy. The administration anticipates that prices will drop further to $245 per month within two years, BioSpace noted. Additionally, Novo Nordisk and Eli Lilly plan to launch new oral weight-loss drugs, such as oral Wegovy, initially priced at $150, the report stated.

The announcement has already impacted the stock market: Eli Lilly’s shares increased by 1.6% to $941, and Novo Nordisk’s U.S. shares rose by 1%, according to

. Despite these gains, year-to-date results are mixed, with LLY up 21.4% and down 45.4%, Reuters reported. Health Secretary Robert F. Kennedy Jr. described the deal as “the most significant drug in our nation” and highlighted its potential to boost productivity for millions of Americans, according to BioSpace.

The MFN policy, implemented through executive order earlier this year, mandates that pharmaceutical companies set U.S. drug prices in line with those in other countries. This latest agreement extends the policy to GLP-1 medications, which have seen soaring demand due to their effectiveness in treating obesity and diabetes, BioSpace reported. However, critics warn that this strategy could hinder pharmaceutical innovation by squeezing industry profits.

A dramatic incident during the press briefing highlighted the importance of the agreement. While Health Secretary Kennedy was speaking, someone near Novo Nordisk CEO Maziar Mike Doustdar fainted, causing the live broadcast to be interrupted. A White House spokesperson later confirmed that the individual, who was associated with one of the companies, was “fine,” according to BioSpace. Although the event was briefly disrupted, the announcement proceeded as planned.

The deal also brings attention to broader debates within Trump’s healthcare policies. While the administration emphasizes the benefits of lower drug costs, it has also faced backlash for proposing reductions to federal assistance programs like SNAP and WIC, which help low-income families during the ongoing government shutdown, as reported by

.