Novo Nordisk, Eli Lilly fall after Trump comments on weight loss drug pricing

Investing.com -- Novo Nordisk (NYSE:NVO) stock fell 3.5% and Eli Lilly (NYSE:LLY) shares dropped 3% in after-hours trading Thursday following comments from President Trump regarding potential price reductions for popular weight loss medications.

During a press conference, Trump specifically mentioned Ozempic, referring to it as "the fat loss drug" when asked about a $1,300 medication he had referenced earlier. When questioned if these drugs would cost $150 out of pocket, Trump responded, "They’ll be much lower. They’ll be much lower."

Dr. Mehmet Oz, who serves as the Administrator of the Centers for Medicare & Medicaid Services, clarified that negotiations for GLP-1 drugs, the category that includes Ozempic, have not yet begun. "We’re going to be rolling these out over time. The GLP-1 category of drugs, which includes Ozempic, have not been negotiated yet," Oz stated.

While no specific timeline was provided for these negotiations, Trump indicated that prices would "come down pretty fast" and mentioned that alternatives exist. Oz added that negotiations would continue until the president is satisfied with the outcome.

The comments appear to have triggered investor concerns about potential revenue impacts for the two pharmaceutical giants that dominate the rapidly growing weight loss and diabetes drug market. Both companies have seen substantial growth driven by their GLP-1 medications, which include Novo Nordisk’s Ozempic and Wegovy, and Eli Lilly’s Mounjaro and Zepbound.

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