Trump Announces Ozempic Price Cuts, Shares of Drug Makers Plummet

BREAKING: President Donald Trump announced that the price of Ozempic, the popular weight loss drug from Novo Nordisk, should be “much lower,” triggering a sharp decline in the stock prices of both Novo Nordisk and Eli Lilly during early trading hours on Friday. Trump claimed during a Thursday Oval Office news conference that the out-of-pocket cost for Ozempic could drop to around $150, significantly lower than its current list price of nearly $1,000 per month.

Shares of Novo Nordisk fell by approximately 6% initially, while Eli Lilly’s stock plunged by as much as 5.1% in pre-market trading. By the market’s opening, Novo Nordisk had partially recovered to a loss of 3.5%, while Eli Lilly was down about 2.6%.

According to Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services (CMS), negotiations regarding the prices of Ozempic and similar drugs are ongoing. He stated, “The GLP-1 category of drugs, which includes Ozempic, have not been negotiated yet,” indicating that discussions will continue, with plans to implement changes over time.

Trump’s remarks were made in conjunction with a deal struck between the White House and Merck KGaA to lower costs for fertility treatments as part of a broader pharmaceutical pricing strategy. The agreement allows Merck to provide its IVF therapies through Trump’s new direct-to-consumer platform, TrumpRX.

Market analysts are weighing in on the implications of Trump’s announcement. Evan Seigerman from BMO Capital Markets stated that the president’s comments “signal aggressive posturing” in ongoing drug price negotiations. However, he cautioned that any potential reduction may not fundamentally alter Novo Nordisk’s business model since insurers already negotiate discounts of 60% to 70% off the list price.

Further complicating the landscape, negotiations are already underway through the Inflation Reduction Act to lower Ozempic prices by November 1, 2023, with reductions expected to take effect in 2027. This follows letters sent by the Trump administration to 17 major drug manufacturers, pushing for prescription drug prices in the U.S. to align with the lowest rates in other developed countries.

The urgency surrounding these developments highlights the significant impact on millions of Americans seeking affordable healthcare options. As negotiations unfold, the possibility of reduced drug costs could reshape the market, making medications more accessible to those in need.

Stay tuned for updates on this developing story as more information becomes available.