Eli Lilly and Company, along with competitor Novo Nordisk, has reached an agreement with the Trump administration to substantially reduce the prices of their popular GLP-1 drugs, such as Zepbound, when purchased through the TrumpRx platform. This deal is aimed at making these obesity and diabetes medications more affordable for cash-paying customers and will facilitate their coverage under Medicare and Medicaid for the first time for obesity with related comorbidities. The arrangement will lower the cost of Zepbound to an average of $346 per month through TrumpRx, a significant reduction from its previous price. In exchange for the price cuts, the companies will receive a three-year exemption from tariffs on pharmaceutical imports. This move is expected to dramatically increase patient access to these treatments. Following the announcement, which was a key factor in the stock's recent performance, analyst sentiment has been largely positive. For instance, Leerink Partnrs upgraded Eli Lilly to a "Strong-Buy," and the company's stock saw a significant jump. The agreement is seen as a major step in expanding the market for Lilly's most profitable drugs.
Eli Lilly and Novo Nordisk Strike Deal with Trump Administration to Lower GLP-1 Drug Prices
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