:max_bytes(150000):strip_icc()/GettyImages-2177964629-16bf8ca88a7f425794778259899280e9.jpg "Here’s What Trump Said That’s Pressuring Novo Nordisk and Eli Lilly Stocks")
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Key Takeaways
- President Trump said he would lower the prices of popular weight-loss drugs, pressuring shares of drugmakers Novo Nordisk and Eli Lilly Friday.
- Centers for Medicare & Medicaid Services head Dr. Mehmet Oz said price negotiations have not finished yet.
Novo Nordisk (NVO) and Eli Lilly (LLY) shares slumped in early trading Friday after President Trump promised to lower the prices of popular weight-loss drugs, such as Novo Nordisk’s Ozempic and Eli Lilly’s Zepbound.
In comments to reporters during a White House event Thursday, Trump said prices could drop to $150 a month from $1,300. When asked which treatment he meant, Trump pointed to Novo Nordisk’s Ozempic, saying prices for weight-loss drugs like it will be “much lower.”
Ozempic’s current list price is $1,000 a month, but Novo Nordisk offers it to consumers buying in cash without insurance for less. Dr. Mehmet Oz, head of the Centers for Medicare & Medicaid Services (CMS), said the CMS has not yet finished negotiating costs with pharmaceutical firms.
Shares of Novo Nordisk were down about 4% in recent trading, while shares of Eli Lilly dropped 3%.
Why This Is Significant
President Trump’s recent comments come amid a broader effort by the administration to cut drug prices in the U.S. to align with lower international rates.
A Novo Nordisk spokesperson told Investopedia the company has engaged with the Trump administration, and “will continue to work to find solutions that help people access the medication they need.”
U.S.-listed shares of Novo Nordisk have lost more than a third of their value this year as the company faces growing competition in the weight-loss drug market. Shares of Eli Lilly have added about 3%.
