Trump threatens to upend GLP-1 market with vow to slash Ozempic prices

Shares of Novo Nordisk and Eli Lilly fell Friday after President Donald Trump said he intends to cut the prices of popular weight-loss and diabetes drugs, including Ozempic, to levels comparable to those in Europe.

During a White House even focused on fertility treatments and prescription costs, Trump said the monthly price of Ozempic would be reduced to $150, down from its current list price of around $1,000.

“I was referring to Ozempic — the fat-loss drug,” Trump said when asked to clarify his comments. “They’ll be much lower.”

The remarks, which came without confirmation of finalized agreements, sent shockwaves through the pharmaceutical market. Novo Nordisk (NVO) stock fell more than 6% and Eli Lilly (LLY) shares dropped nearly 4% after the announcement.

Zealand Pharma (ZLDPF) and Viking Therapeutics (VKTX) also posted declines.

Policy uncertainty and the market

Trump’s comments followed weeks of negotiations under his administration’s revived “Most Favored Nation” policy, which seeks to align U.S. drug prices with those paid in other wealthy nations. The administration has already announced similar dealt with Pfizer and AstraZeneca in recent months, offering lower-priced medicines through a direct-to-consumer (DTC) platform, known as “TrumpRx.”

Novo Nordisk confirmed it is in discussions with the administration about pricing for semaglutide-based products but declined to comment on specifics.

“Novo Nordisk has engaged in discussions with the Administration regarding the Most Favored Nation executive order,” a company spokesperson said in a statement to Reuters. “We remain focused on improving patient access and affordability.”

Eli Lilly, which markets Mounjaro and Zepbound, said it is also in talks with federal officials, but has not agreed to any price commitments.

Analysts see ‘negotiating leverage’ more than policy shift

Market analysts described Trump’s $150 target as aspirational and potentially intended to pressure drugmakers into new concessions rather than reflect an imminent policy change. “We are watching a private negotiation play out in public,” said one Bernstein analyst. “The $150 price is not yet set in stone.”

Kevin Gade, chief operating officer at investment firm Bahl & Gaynor, told Reuters that investors are reacting to the worst-case scenario: “It’s hard to know if Trump said that to bring the obesity players to the negotiating table or if he truly believes that will be the final price.”

For now, the administration’s promise of “swift negotiations” leaves investors, clinicians, and patients watching closely.