White House Plans Could Cut GLP-1 Costs, Reshape U.S. Weight-Loss Market

Post by : Bianca Suleiman

Shares of Eli Lilly and Novo Nordisk rose Thursday after reports of a potential White House proposal to reduce the price of leading weight-loss GLP‑1 therapies and broaden their availability through Medicare and Medicaid.

The policy would target GLP‑1 medicines, where Novo’s Wegovy and Lilly’s Zepbound currently dominate U.S. demand. These weekly injectable treatments carry list prices above $1,000 per month, although both manufacturers provide a $499 monthly cash option for some patients.

While Novo launched first, Lilly’s Zepbound has rapidly expanded its patient base. Market analysts say the pricing model under discussion could disproportionately favor Lilly, strengthening its position in the U.S. obesity treatment market.

The proposal fits within a wider government push to make prescription drugs more affordable and to reduce reliance on traditional pharmacy benefit managers. It echoes earlier administration efforts aimed at lowering medication costs and improving patient access; drugmakers such as Pfizer and AstraZeneca have already participated in direct-to-consumer pricing programs like TrumpRx.

Observers note that a monthly cap—reportedly near $150—could broaden access to millions, including those wary of injectable therapies. Lilly is also advancing an oral GLP‑1 candidate, orforglipron, which could further boost its share, while Novo’s oral Wegovy remains under FDA review with a decision expected by late 2025.

With both firms racing to introduce oral alternatives, the U.S. market for obesity treatments may shift markedly, increasing patient access and intensifying competition in a high-demand segment.