Novo, Lilly sign MFN pricing deal with Trump administration

The much-anticipated pricing agreement between Novo Nordisk and Eli Lilly and the Trump administration on GLP-1 drugs has arrived, with a deal that spans the current injectable products as well as newer oral therapies, if approved by the FDA.

The aim is to expand access to the drugs and to make them available via Medicare for older Americans and Medicaid for people with low incomes, as well as reducing the cost for cash purchasers. It also marks the latest development in President Trump's Most Favoured Nation (MFN) drive to reduce medicine prices in the US.

According to the White House, Novo Nordisk's semaglutide-based Ozempic for diabetes and Wegovy for obesity will cost $350 per month when purchased through TrumpRx, a federal direct-to-consumer (DTC) sales channel, which is expected to launch with pricing before the end of the year and start supplying medicines in January.

Lilly's Zepbound (tirzepatide) and oral GLP-1 orforglipron will cost $346 through TrumpRx, while oral Wegovy will be priced at $150.

Meanwhile, the cost to Medicare of Ozempic, Wegovy, Zepbound and Lilly's tirzepatide-based drug for diabetes, Mounjaro, will be capped at $245, while people in Medicare will access them for a co-pay of just $50 per month.

The agreement means that obesity drugs Wegovy and Zepbound will be made available for the first time through Medicare. At the moment, most people using the medicines have to pay for them in cash, with DTC prices of up to $499 per month.

Other drugs that will be provided at a discount thanks to the deal include Lilly's migraine therapy Emgality (galcanezumab) and older GLP-1 agonist Trulicity (dulaglutide) for diabetes, as well as Novo Nordisk insulin products.

In addition, both companies have agreed to guarantee Medicare will get MFN prices for all new medicines they bring to market in the US, while Novo Nordisk has committed to a $10 billion investment in US facilities. Lilly has already committed to a $27 billion investment programme.

"Americans have been spending as much as 52% more for Zepbound and 1,400% more for Wegovy than patients in Europe," said Trump at a press conference to announce the deal. "That ends, starting today."

The press conference was brought to an abrupt halt when Novo Nordisk's global brand director Gordon Findlay lost consciousness and collapsed during remarks by Lilly chief executive David Ricks. Initial reports suggest Findlay is recovering.