Eli Lilly’s (LLY) stock is down about 1% after U.S. President Donald Trump announced a deal to lower the prices of weight-loss drugs, including the company’s upcoming obesity pill.
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Trump said at a press conference that he has struck deals with Eli Lilly and its rival Novo Nordisk (NVO) to reduce the prices of the companies’ weight-loss medications and provide the drugs with coverage under Medicare and Medicaid.
Trump said the arrangement with the pharmaceutical companies will expand access to blockbuster medications and make them more affordable for Americans. The government plans to offer the cheaper weight-loss drugs directly to consumers on a website the Trump administration runs called TrumpRx.
Expanded Coverage
Medicare is expected to begin covering Eli Lilly’s Zepbound weight-loss drug and Novo Nordisk’s Wegovy by mid-2026. Analysts say the move could broaden the market for the medicines and lead more private insurers to cover them. Under terms of the deal, Medicare patients will pay only $50 per month for all approved uses of injectable and oral obesity medications.
Additionally, the upcoming weight-loss pill from Eli Lilly that is in final-stage approvals will be sold at $145 per month for everyone getting it through Medicare, Medicaid, and TrumpRx. Starting doses of existing injections of Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound will be $350 per month on TrumpRx, but will move down to $245 per month over the next two years.
Wegovy and Zepbound have not been covered by Medicare up to this point, and most private insurers don’t cover the medications. The drugs currently cost consumers $1,000 per month or more.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 18 Buy and four Hold recommendations issued in the last three months. The average LLY price target of $917.63 implies 2.14% downside from current levels.
