President Donald Trump announced that the cost of Novo Nordisk’s widely used diabetes and weight-loss drug, Ozempic, will be reduced. Speaking at a White House event focused on fertility treatments and drug pricing, Trump said the lower prices would follow prompt negotiations with the pharmaceutical company. “They’ll be much lower,” he told reporters, as per Fox News.Trump Announces Plans To Cut Ozempic CostsNovo Nordisk produces both Ozempic and Wegovy, which contain the same active ingredient, semaglutide, but are approved for different purposes. Ozempic, approved in 2017, is primarily used to treat Type 2 diabetes, with weight loss occurring as a side effect. Wegovy, approved four years later, is specifically intended for long-term weight management in adults who are obese or overweight and have at least one weight-related condition, such as high blood pressure or Type 2 diabetes. In recent years, demand for both drugs has surged, especially among people looking to lose weight.During a Thursday Oval Office news conference focused on in vitro fertilization drugs, President Trump mentioned the idea of lowering prices for other medications, including Ozempic. His Centers for Medicare and Medicaid Administrator, Dr. Mehmet Oz, later cautioned that nothing had been finalized.“In London, the same drug costs $130, but in New York, it’s $1,300,” Trump said during Thursday’s IVF announcement. “Now, instead of $1,300, people will be paying around $150.”Still, Trump’s remarks generated significant attention. Patients struggling with the high cost of these drugs expressed hope for more affordable access, while doctors called the potential price reduction “huge for patients.” Wall Street also reacted: shares of Novo Nordisk and Eli Lilly, makers of GLP-1 drugs such as Ozempic, Wegovy, Mounjaro, and Zepbound, dropped sharply, erasing tens of billions of dollars in market value.Novo Nordisk Shares Fall After Trump’s CommentShares of Eli Lilly & Co. and Novo Nordisk dropped in late trading after President Trump suggested that the price of the popular diabetes drug Ozempic could fall to about $150 per month. Currently, the U.S. list price for a month’s supply is around $1,000, with Trump referring to it as “the fat loss drug.” In response, Novo’s American depositary receipts fell up to 4.7 percent, while Lilly’s shares dropped as much as 5.3 percent.Novo Nordisk has been in discussions about lowering drug costs since Trump sent letters to 17 major pharmaceutical companies urging price cuts. Ozempic and its counterpart, Wegovy, were also selected for price negotiations under the Inflation Reduction Act (IRA).Most Favored Nation’ Drug PricesPresident Trump has recently struck deals with Pfizer, AstraZeneca, and EMD Serono under the ‘Most Favored Nation’ pricing framework, with more agreements promised. These deals offer medicines at Most Favored Nation prices to Medicaid, which already receives substantial discounts, and to certain drugs available directly to consumers without insurance through the TrumpRx platform.In exchange, pharmaceutical companies receive relief from potential tariffs, provided they continue investing in U.S. manufacturing and research.
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