Shares of Eli Lilly and Novo Nordisk experienced significant declines following President Donald Trump’s announcement regarding potential price reductions for GLP-1 medications, including Novo Nordisk’s Ozempic.
On October 16, 2025, during a White House event focused on drug pricing and fertility treatments, President Trump stated that the price of Ozempic, a leading weight-loss drug, would be “much lower,” suggesting a reduction to approximately $150 per month. This remark led to a sharp drop in the stock prices of both pharmaceutical companies. Novo Nordisk’s shares fell by 6.4%, while Eli Lilly’s declined by over 5%.
Ozempic, primarily used for managing diabetes, has gained popularity for its weight-loss benefits. The current list price for a month’s supply is about $1,000, with Novo Nordisk offering it directly to consumers at $499 per month. President Trump’s comments raised concerns among investors about potential revenue impacts due to anticipated price negotiations.
In response to the President’s remarks, Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, clarified that negotiations for GLP-1 drug prices have not yet commenced. He emphasized that the government is actively working on these negotiations, but no final agreements have been reached.
Analysts have expressed mixed views on the potential impact of these price reductions. Some suggest that the lower prices could lead to higher volumes, given the potential for price elasticity of demand, which may not have been previously forecasted. Others believe that the market’s reaction may be an overreaction, noting that insured individuals in the U.S. already pay as low as $25 per month for GLP-1 medications.
Both Eli Lilly and Novo Nordisk have been significant players in the GLP-1 market, with their medications contributing substantially to their revenues. Eli Lilly’s Mounjaro and Zepbound, along with Novo Nordisk’s Ozempic and Wegovy, have been central to their growth strategies. The potential price reductions could impact their financial performance, depending on the final negotiated prices and market dynamics.
As the pharmaceutical industry awaits further developments, stakeholders are closely monitoring the situation to assess the long-term effects of these proposed price changes on the GLP-1 drug market and the companies involved.