CNBC Television
President Trump announces deals with Eli Lilly, Novo Nordisk to slash weight loss drug prices
11/6/2025, 5:49:03 PM
Economic Summary
- The administration announced most-favored-nation (MFN) pricing deals with Eli Lilly (LLY) and Novo Nordisk (NVO), and earlier agreements with Pfizer (PFE), AstraZeneca (AZN), and EMD Serono, aiming to cap U.S. prices at the lowest global rates which will lower out-of-pocket costs but may compress industry margins.
- Specific drug price changes cited: Wegovy (NVO) expected to drop from ~$1,350/month to ~$250/month and ZepBound (LLY) from ~$1,080/month to ~$346/month; future oral GLP-1s committed to ≤ $149/month, and Medicare/Medicaid will cover these drugs with Medicare co-pays as low as $50.
- Eli Lilly pledged $27 billion and Novo Nordisk $10 billion to U.S. reshoring and manufacturing expansion, and the administration emphasized using tariffs as leverage to secure global price concessions.
Bullish
- Agreements expand access and lower consumer costs, e.g., Wegovy and ZepBound price cuts.
- Medicare/Medicaid coverage and low co-pays (~$50) will enlarge payer-funded markets.
- Large U.S. manufacturing investments ($27B LLY, $10B NVO) support onshoring and long-term capacity.
Bearish
- Most-favored-nation pricing could compress drug makers' U.S. margins and reduce revenue.
- Equalizing prices globally may raise prices elsewhere or invite trade retaliation and legal challenges.
- Policy and tariff uncertainty (and potential negative Supreme Court outcome) creates regulatory risk for pharma.
Bullish tickers
LLYNVOPFEAZN
Bearish tickers
LLYNVOPFEAZNEMD SERONO
LLY
Bullish
Commitments expand insured access, and a $27B U.S. investment boosts manufacturing and capacity.
Bearish
MFN pricing commitments for ZepBound and Medicaid pricing could pressure U.S. revenues and margins.
NVO
Bullish
Lower prices plus Medicare/Medicaid coverage broaden market reach; $10B U.S. investment supports supply.
Bearish
Wegovy MFN pricing and capped oral GLP-1 prices may reduce per-patient revenue.
PFE
Bullish
Participation in price concessions may ease political pressure and expand access.
Bearish
Agreement to drastically lower prices for U.S. patients could reduce product revenues.
AZN
Bullish
Price concessions could improve affordability and relationship with U.S. payers.
Bearish
Lowered U.S. prices under MFN may weigh on sales and margins.
EMD SERONO
Bullish
Lower prices may expand patient access and favorably position the company politically.
Bearish
Agreement to lower prices in the U.S. could reduce profitability on affected products.
People mentioned
Donald TrumpDavid RicksMike DusterRobert F. Kennedy Jr.Howard LudnickMehmet OzMarty McCaryChris KlumpSteveJoe Biden