Shares of Eli Lilly & Co and Novo Nordisk A/S climbed following reports that both pharmaceutical giants are preparing to announce new agreements with the White House aimed at lowering the prices of their popular weight-loss drugs.
At 10:36 a.m. in New York, Lilly’s shares were up 1.5%, while Novo Nordisk’s U.S. depositary receipts gained 1.3%, reversing earlier declines. The report originated from Endpoints News, citing individuals familiar with the negotiations.
Proposed Deal Details
According to Endpoints, the proposed deal would make the lowest-dose versions of the companies’ weight-loss medications available for $149 per month. In exchange, the drugs would become eligible for coverage under Medicare, the federal health insurance program that serves seniors and people with disabilities.
Policy Shift on Medicare Coverage
Currently, Medicare is prohibited by law from covering medications prescribed specifically for weight loss. If finalized, the agreements would represent a significant policy shift and could expand access to these drugs for millions of Americans, potentially reshaping the weight-loss treatment landscape.
