Trump Administration Confirms Pricing Agreement with Weight-Loss Drug Manufacturers Eli Lilly and Novo Nordisk
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2025
0mins
Source: MarketWatch
Deal with Drugmakers: The Trump administration has reached an agreement with Eli Lilly and Novo Nordisk to lower prices for GLP-1 drugs for Medicare, Medicaid, and TrumpRx.gov users.
Pricing Structure: Oral doses of GLP-1 drugs will be priced at $149 per month for eligible beneficiaries, while other doses will cost $245 per month.
Coverage for Obesity: The savings from these price reductions will be used to provide coverage for GLP-1 drugs for obesity patients at the same price of $245 per month.
Direct-to-Consumer Initiative: The new pricing structure is part of the administration's efforts to enhance access to medications through the direct-to-consumer website TrumpRx.gov.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1037.150
Low
950.00
Averages
1192
High
1500
Current: 1037.150
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FDA Launches PreCheck Program to Strengthen Drug Supply Chain
- Program Launch: The FDA officially opened applications for its PreCheck pilot program on Sunday, aimed at enhancing the domestic pharmaceutical supply chain by improving regulatory predictability and supporting U.S. manufacturing site development.
- Facility Selection Criteria: The FDA plans to select an initial group of new pharmaceutical manufacturing facilities in 2026, with selection criteria based on alignment with national priorities, including product type and facility development stage.
- Two-Phase Implementation: The PreCheck program will roll out in two phases, with the first phase providing early technical guidance and a facility-specific Drug Master File, while the second phase focuses on pre-submission meetings and inspections to expedite the review process and reduce supply chain risks.
- Eli Lilly's Investment: Eli Lilly announced plans for a new injectable medicine and device manufacturing facility in the U.S., expected to create 850 permanent jobs, with construction starting in 2026 and operations commencing in 2031, further enhancing domestic drug production capabilities.
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FDA Launches Pilot PreCheck Program for Pharma Manufacturing
- PreCheck Program Launch: The US FDA has begun accepting applications for its PreCheck program aimed at simplifying the construction process for new pharmaceutical manufacturing facilities, thereby enhancing overall industry efficiency and responsiveness.
- Two-Phase Implementation: The program consists of two phases; the first phase, Facility Readiness, involves regular contact between manufacturers and the FDA for early technical advice to ensure smooth operations and pre-operational reviews.
- Priority for Critical Drugs: The FDA has stated that priority will be given to facilities producing innovative and critical medicines for the US market, which will help enhance the stability and safety of the domestic drug supply chain.
- Pharma Giants' Investments: Since President Trump took office in January 2025, major pharmaceutical companies, including Eli Lilly, Johnson & Johnson, and Merck, have agreed to make significant investments in US manufacturing facilities, reflecting the industry's commitment to bolstering domestic manufacturing capabilities.
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