Novo Nordisk and Eli Lilly Stocks Fall After Trump Announces Weight-Loss Drug Price Cuts

TLDR

• Novo Nordisk shares dropped 6.4% and Eli Lilly fell over 5% after President Trump said Ozempic prices could drop from $1,000 to $150 per month
• Trump made comments during a White House press briefing about drug pricing and fertility treatments on Thursday
• The Centers for Medicare and Medicaid Services head Mehmet Oz clarified that talks on weight-loss drug prices are still ongoing with no final deal reached
• Trump’s “most favored nation” policy requires drugmakers to charge U.S. patients no more than prices in other wealthy nations
• UBS analysts stated they had already factored potential U.S. price cuts into their forecasts for Novo Nordisk

Shares of Novo Nordisk and Eli Lilly fell in trading after President Donald Trump announced that prices for popular weight-loss drugs would be reduced. Novo Nordisk shares dropped as much as 6.4% while Eli Lilly declined over 5%.

Novo Nordisk A/S, NVO

Trump told reporters at a White House event on Thursday that Ozempic, Novo Nordisk’s diabetes and weight-loss drug, would see prices drop to around $150 per month. The drug currently has a list price of about $1,000 monthly.

The comments came during a press briefing focused on drug pricing and fertility treatments. Trump highlighted a deal with Germany’s Merck KGaA to reduce fertility treatment costs in exchange for temporary tariff relief.

Similar pricing agreements have been reached with Pfizer and AstraZeneca. These deals raised concerns that Novo Nordisk and Eli Lilly could face similar negotiations for their weight-loss medications.

Price Negotiations Still in Progress

Mehmet Oz, who heads the Centers for Medicare and Medicaid Services, provided clarification after Trump’s remarks. He confirmed that discussions about weight-loss drug pricing are ongoing but no final deal has been completed.

Ozempic is approved for treating diabetes but contains the same active ingredient as Wegovy, Novo Nordisk’s weight-loss drug. In the United States, doctors frequently prescribe Ozempic off-label for obesity treatment.

Eli Lilly’s competing drugs Mounjaro and Zepbound could face similar pricing pressure. Investors worried these treatments might be included in future government negotiations.

Government Pricing Policy

Trump has worked to reduce the gap between U.S. and foreign drug prices since taking office in January 2025. His administration’s “most favored nation” policy requires drugmakers to charge U.S. patients no more than prices in other wealthy countries.

A spokesperson for Novo Nordisk confirmed the company is in discussions with the Trump administration about the most favored nation order. Zealand Pharma shares also fell around 6% following Trump’s comments.

UBS analysts noted they had already included potential U.S. price cuts in their financial forecasts for Novo Nordisk. The analysts wrote that if Trump’s mentioned prices become the negotiated amounts, it would be captured by their existing projections.

Novo Nordisk shares fell to a near three-week low of 342.3 crowns. Eli Lilly maintains a Strong Buy rating from analysts with expected 12.4% upside potential.

Novo Nordisk has a Moderate Buy rating with 8.3% upside potential. Demand for weight-loss drugs continues to support both companies despite pricing concerns.

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