US President Donald Trump has announced new agreements aimed at reducing the prices of popular weight-loss drugs. The announcements came during a White House event alongside executives from pharmaceutical companies Eli Lilly and Novo Nordisk. With these agreements, consumers will pay significantly reduced prices for GLP-1 drugs, crucial for treating obesity and diabetes.
Details of the Agreements
As part of the new deals, the monthly cost for obesity medications like Wegovy and Zepbound will be between $245 and $350. These prices are drastically lower than the current market rate, where many GLP-1 drugs exceed $1,000 monthly without insurance or discounts.
Medicare and Medicaid Expansion
The agreements will enhance Eli Lilly and Novo Nordisk’s access to Medicare and Medicaid, which serve elderly and low-income Americans. It is estimated that 10% of Medicare beneficiaries will qualify for expanded access, where their out-of-pocket cost for these drugs will be capped at $50.
- Wegovy: Starting at $350 per month, dropping to $250 in two years.
- Zepbound: Initial cost of $299 for the starting dose.
- Orforglipron: Available for $149 for the lowest dose.
The rollout for Medicaid will vary based on state participation, with a phased implementation expected.
Impact of Trump’s Drug Pricing Strategy
Trump has long advocated for “most-favoured nations” prices, aiming to align US drug prices with lower costs abroad. The new weight-loss drugs will also be sold at discounted rates via the upcoming government-operated website, TrumpRx, expected to launch by January.
Regulatory and Coverage Challenges
Currently, GLP-1 drugs are not covered by private insurance for weight loss purposes. Federal law restricts Medicare from covering these medications unless used for diabetes or cardiovascular issues. Only 13 states provide weight loss coverage under Medicaid.
Health Secretary Robert F Kennedy Jr remarked that tackling obesity is critical as it drives chronic diseases in America. While acknowledging the role of medications, he emphasized the necessity of lifestyle changes, including diet and exercise.
Pressure on Pharmaceutical Companies
Trump’s administration has been actively pursuing lower drug prices since July. He has been in discussions with multiple pharmaceutical firms, sending letters to 17 companies to negotiate price reductions. Pfizer was among the first to strike a deal, reducing some medicine prices by up to 85% through the TrumpRx website.
AstraZeneca and EMD Serono have also engaged with the administration to establish similar agreements, strengthening the push for affordable healthcare options in the United States.
