Weight-loss drug stocks drop after Trump pledges major price cuts
President Trump promised to lower the price of Ozempic and similar GLP-1 drugs to $150 per month during a White House event, triggering a sharp selloff in shares of Novo Nordisk and Eli Lilly—Novo shares fell ~6–7%, Lilly ~4% by Friday after the announcement123.
Novo Nordisk’s Ozempic, currently listed at ~$1,000/month (or $499 for cash-pay customers), and Eli Lilly’s Mounjaro and competitor Wegovy were specifically mentioned as targets for price reductions23. These drugs are approved for diabetes and/or obesity, and are often used off-label for weight loss.
Officials, including CMS head Mehmet Oz, clarified that formal price negotiations had not yet begun for GLP-1 drugs, making the president’s comments appear as a public negotiating tactic rather than finalized policy12.
Analysts described the market reaction as anticipating a worst-case scenario for drugmakers, with uncertainty over whether the $150/month price is achievable or intended as a starting position for future negotiations2.
The Trump administration’s broader push to align U.S. drug prices with those in other wealthy nations—via a 'most favored nation' policy—has further pressured pharmaceutical stocks throughout 202526.
By Monday, October 20, Novo Nordisk and Eli Lilly shares had mostly recovered from the initial drop, but overall remained down ~1% over the past five days1.
Sources:
1. https://www.drugdiscoverytrends.com/trumps-150-ozempic-vow-hits-novo-lilly-even-as-oz-says-we-have-not-negotiated-those-yet/
2. https://www.the-independent.com/life-style/health-and-families/health-news/trump-ozempic-price-novo-nordisk-lilly-stock-b2847484.html
3. https://www.pharmexec.com/view/eli-lilly-novo-stocks-react-president-trump-comments-glp-prices