Novo Nordisk (NVO) and Eli Lilly & Co. (LLY) shares are trending lower in pre-market trading after President Donald Trump said the price of Ozempic, Novo’s top-selling weight-loss and diabetes drug, could drop to $150 a month from its current list price of about $1,000.
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At a press briefing on Thursday, Trump referred to Ozempic as “the fat loss drug” and said prices will soon be “much lower.” His comments led to a broad sell-off in weight-loss drug stocks, as investors grew concerned about possible government pressure on pricing and tighter competition in the GLP-1 drug market.
Eli Lilly shares also fell more than 5%, as investors worried that its own rival treatments — Mounjaro and Zepbound — could face similar pricing scrutiny.
Price Talks Still in Progress
Trump made the remarks while highlighting a new deal with Germany’s Merck KGaA to cut prices of fertility treatments. In return, the company will receive temporary relief from U.S. tariffs. The government has also made similar pricing agreements with Pfizer (PFE) and AstraZeneca (AZN).
These deals have raised concern that Novo Nordisk (NVO) and Eli Lilly (LLY) could be next in line for price negotiations on their popular weight-loss drugs.
However, Mehmet Oz, head of the Centers for Medicare and Medicaid Services (CMS), later clarified that talks on weight-loss drug prices are still ongoing, including Ozempic. He said no final deal has been reached yet, though Trump insisted prices would drop “pretty fast.”
Wall Street’s Take on NVO and LLY
Using the TipRanks Stock Comparison Tool, Eli Lilly holds a Strong Buy rating with an expected 12.4% upside, supported by strong demand for its weight-loss drugs. Meanwhile, Novo Nordisk has a Moderate Buy rating and an 8.3% upside potential, reflecting steady confidence in its long-term growth outlook despite recent pricing concerns.
