Key Takeaways
- Eli Lilly (LLY) and Novo Nordisk (NVO) have struck deals with the Trump administration to significantly reduce prices for their popular obesity and diabetes drugs, including Zepbound, Wegovy, and Ozempic.
- Under the agreement, the lowest dose of Eli Lilly's Zepbound will be available to cash payers for $299 per month, with additional doses priced at $449. Similar pricing will apply to its experimental Orforglipron pill if approved.
- Novo Nordisk will lower prices across all injectable Wegovy and Ozempic medicines, with the lowest dose of the anticipated Wegovy pill set at $149 under the deal.
- These drug price reductions are part of a broader initiative by the Trump administration to make nearly all primary care drugs available at US net prices and, in many cases, Most Favored Nation prices through "Trump Rx," slated for an early 2026 launch.
- The economic landscape remains challenging, with U.S. layoffs hitting a 22-year high in October, as over 153,000 jobs were cut—the most since 2003—marking a brutal start to the fourth quarter.
The Trump administration has announced two significant deals with pharmaceutical giants Eli Lilly (LLY) and Novo Nordisk (NVO), aimed at dramatically lowering the cost of key obesity and diabetes medications. These agreements are expected to bring substantial price reductions for consumers, particularly for cash payers.
Under the terms of the deal, Eli Lilly (LLY) will make the lowest dose of its weight-loss drug Zepbound available to cash payers for $299 per month. Higher doses of the medication will be priced at $449 per month. These lower prices will also extend to Eli Lilly's experimental Orforglipron pill, should it receive regulatory approval. Furthermore, Eli Lilly will add its diabetes medicines Emgality, Trulicity, and Mounjaro to the program.
Similarly, Novo Nordisk (NVO) has agreed to reduce prices across all its injectable Wegovy and Ozempic medicines. The lowest dose of the anticipated Wegovy pill, if approved, will be available for $149 under this new arrangement. Novo Nordisk also committed to additional investment in U.S. manufacturing, including producing the Wegovy pill in the U.S. if it gains approval.
Senior Trump administration officials stated that these agreements are part of a broader strategy to ensure Americans pay the lowest global prices for drugs. Nearly all primary care drugs are expected to be available at US net prices and, in many cases, Most Favored Nation prices when the "Trump Rx" platform launches in early 2026. Both pharmaceutical companies will also receive a 3-year U.S. tariff reprieve as part of the deal.
These developments in drug pricing come amidst a challenging economic backdrop. The U.S. economy saw a significant increase in layoffs in October, with over 153,000 jobs cut, marking a 22-year high and the most since 2003. This indicates a brutal start to the fourth quarter for the job market.
Federal Reserve official Hammack offered a cautious outlook on monetary policy, stating it's "not obvious" the U.S. central bank should cut interest rates again given persistent inflation. Hammack expects inflation to overshoot the 2% target by 1 percentage point this year and remain elevated in 2026, taking two to three years to return to target. Despite this, Hammack does not foresee a high probability of a labor market downturn, though acknowledging the job market may be more fragile than data suggests. Meanwhile, U.S. 30-year fixed-rate mortgages averaged 6.22% in the November 6 week, up from 6.17% the prior week.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.