TLDR
- Novo Nordisk stock fell 6.4% and Eli Lilly dropped 5% after Trump said Ozempic prices could fall to $150 monthly from $1,000
- Trump announced the price cuts during a Thursday White House event on drug pricing and fertility treatments
- CMS head Mehmet Oz confirmed negotiations are ongoing but no final agreement has been reached yet
- Trump’s “most favored nation” policy aims to match U.S. drug prices with those in other wealthy countries
- Analysts at UBS said they already included potential price cuts in their financial models for Novo Nordisk
Shares of weight-loss drug makers Novo Nordisk and Eli Lilly declined on Friday after President Donald Trump announced plans to reduce prescription drug costs. Novo Nordisk fell as much as 6.4% while Eli Lilly dropped over 5% in early trading.
Trump said during a White House press conference that Ozempic, a popular diabetes and weight-loss medication, would see its price drop dramatically. The drug currently costs about $1,000 per month but could fall to $150 under proposed changes.
When reporters asked Trump to identify which drug he planned to make cheaper, he referred to “the fat loss drug” and said prices would be “much lower.” He added that the changes would happen “pretty fast.”
The announcement came during an event focused on drug pricing policies and fertility treatment costs. Trump highlighted a recent agreement with Germany’s Merck KGaA that reduced fertility drug prices in exchange for temporary tariff relief.
The administration has made similar deals with Pfizer and AstraZeneca. These agreements sparked concern that Novo Nordisk and Eli Lilly could face mandatory price negotiations for their weight-loss products.
Ongoing Negotiations With No Final Deal
Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, clarified Trump’s statements later that day. He confirmed that talks about weight-loss drug pricing continue but emphasized that no final agreement exists yet.
Ozempic received FDA approval for diabetes treatment but shares the same active ingredient as Wegovy, Novo Nordisk’s dedicated weight-loss drug. Doctors in the United States commonly prescribe Ozempic off-label for weight loss treatment.
Eli Lilly manufactures competing drugs Mounjaro and Zepbound that could face similar pricing pressure. Investors worry these medications might be included in future government price negotiations.
Trump’s Drug Pricing Strategy
Since taking office in January 2025, Trump has pushed to narrow the price gap between U.S. and international prescription drug costs. His “most favored nation” policy mandates that drugmakers cannot charge U.S. patients more than customers in other wealthy nations.
A Novo Nordisk spokesperson confirmed the company is in active discussions with the Trump administration regarding the most favored nation order. Zealand Pharma, another weight-loss drug manufacturer, saw its shares fall approximately 6% following the announcement.
UBS analysts reported they had already factored potential U.S. price reductions into their projections for Novo Nordisk. They stated that if Trump’s proposed prices become final, the impact would already be reflected in their financial models.
Market Response and Analyst Outlook
Novo Nordisk shares dropped to a near three-week low of 342.3 crowns during Friday trading. The stock closed down 6.3% at 343 crowns.
Eli Lilly maintains a Strong Buy rating from Wall Street analysts with a projected 12.4% upside. Novo Nordisk holds a Moderate Buy rating with an expected 8.3% upside potential.
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