CNBC Television
LIVE: President Trump expected announcement on weight loss drug pricing deal — 11/5/2025
11/6/2025, 2:46:56 PM
Economic Summary
- The administration secured most-favored-nation (MFN) pricing commitments from Eli Lilly (LLY) and Novo Nordisk (NVO), cutting retail monthly prices — Wegovy claimed to fall from $1,350 to $250 and Zepbound/ZepFound from $1,080 to $346 — and capping future oral GLP-1s at $149/month, greatly lowering patient costs.
- Medicare and Medicaid will expand coverage for these weight-loss drugs with Medicare co-pays as low as $50, which the administration says will improve access for seniors and low-income patients and reduce disparities.
- LLY and NVO committed to U.S. reshoring investments ($27 billion for Eli Lilly, $10 billion for Novo Nordisk) intended to increase domestic manufacturing capacity and reduce reliance on foreign supply chains.
- The administration argues these deals will be budget neutral within ~2 years due to reduced obesity-related healthcare spending, and used tariff leverage and prior agreements with Pfizer (PFE), AstraZeneca (AZN), and EMD Serono (EMD SERRANO) to secure lower prices.
- Policy emphasis on MFN pricing aims to align U.S. prices with the lowest global prices, addressing perceived fairness where U.S. patients historically paid substantially more for identical products.
Bullish
- Massive drug price cuts expand access and lower patient out-of-pocket costs.
- LLY and NVO commit large U.S. manufacturing investments, supporting domestic production.
- Medicare/Medicaid coverage plus MFN pricing promises greater demand and potential healthcare cost savings.
Bearish
- Legal and implementation risk: a negative Supreme Court decision or regulatory challenge could block or limit the policy.
- Unknown long-term safety profile of GLP-1 weight-loss drugs could trigger future restrictions or reduced demand.
- Execution risk for trumprx site and program rollout could limit patient access and uptake.
Bullish tickers
LLYNVOPFEAZNEMD SERRANO
Bearish tickers
LLYNVOPFEAZNEMD SERRANO
LLY
Bullish
Committed $27B U.S. investment and retained sales volume potential from broader access and Medicare/Medicaid coverage.
Bearish
MFN pricing and mandated deep discounts could pressure margins and revenue for flagship GLP-1 products.
NVO
Bullish
Novo Nordisk pledged $10B U.S. investment and wider coverage could expand user base and long-term market penetration.
Bearish
Mandatory lower pricing for Wegovy/Ozempic and future caps may reduce pricing power and profitability.
PFE
Bullish
Participation in price-lowering deals may secure continued market access and favor with policymakers and payers.
Bearish
Agreements to lower U.S. prices under MFN could compress margins for products sold at premium U.S. prices.
AZN
Bullish
Agreeing to reduced prices may preserve or expand U.S. market share and payer relationships.
Bearish
MFN commitments and lowered U.S. pricing could reduce revenue for previously higher-priced U.S. products.
EMD SERRANO
Bullish
Complying with MFN pricing could maintain access to U.S. patients and stabilize long-term demand.
Bearish
Lower U.S. pricing commitments risk margin pressure for products previously sold at higher U.S. prices.
People mentioned
Donald TrumpDavid RicksMike DuzdarRobert F. Kennedy Jr.Howard LutnickMehmet OzMarty McCaryChris KlumpMike NeustarAbe SuttonSteve