Eli Lilly, Novo win three-year tariff pause as part of drug pricing deal

[White House in Washington DC. American presidents residence. Iconic White House building. Federal government. The White House and American flag. Historic White House architecture.]
Tverdohlib/iStock via Getty Images

Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) and Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) traded higher on Thursday as the companies announced a major drug-pricing deal with the Trump administration, receiving a three-year reprieve from tariffs in exchange for lower prices for their branded medicines in the U.S.

The CEOs of the weight-loss drugmakers, LLY’s (LLY [https://seekingalpha.com/symbol/LLY]) David Ricks and Novo’s (NVO [https://seekingalpha.com/symbol/NVO]) Mike Doustdar, joined President Donald Trump at the White House to announce the deals.

As part of the agreements, the duo’s GLP-1 class of popular weight-loss drugs, which cost roughly $1,000 - $1,350 per month for patients without insurance, will be available for Medicare and Medicaid beneficiaries at sharply lower prices from 2026.

“It’s a triumph for American patients that will save lives and improve the health of millions and millions of Americans,” Trump, flanked by senior government officials including HHS Secretary Robert F. Kennedy, Jr., said at the Oval Office event.

The announcement marked the latest pharma deal the U.S. has signed this year in line with President Trump’s most-favored-nation (MFN) pricing policy, which seeks to lower U.S. drug prices to the levels in other developed nations.

Among major drugmakers, Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) and AstraZeneca (AZN [https://seekingalpha.com/symbol/AZN]) have already inked agreements with the White House to provide some of their prescription drugs at significant discounts to cash-paying customers through a government-run website named TrumpRx.

On Tuesday, The Wall Street Journal reported that as part of their agreements, Novo (NVO [https://seekingalpha.com/symbol/NVO]) and Lilly (LLY [https://seekingalpha.com/symbol/LLY]) will offer the lowest doses of their weight-loss drugs, Wegovy and Zepbound, through TrumpRx for $149 and $299 per month, respectively. [https://seekingalpha.com/news/4514411-eli-lilly-novo-us-deals-obesity-drug-prices]

In a statement on Thursday, the CEO of Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) highlighted the [https://www.cnbc.com/2025/11/06/trump-eli-lilly-novo-nordisk-deal-obesity-drug-prices.html] deal as “a pivotal moment in U.S. health care policy and a defining milestone [https://www.cnbc.com/2025/11/06/trump-eli-lilly-novo-nordisk-deal-obesity-drug-prices.html]for Lilly,” according to CNBC.

“Today’s announcement will bring semaglutide medicines to more American patients at a lower cost,” NVO CEO Mike Doustdar said in a statement, referring to the active ingredient of Wegovy.

_Update: 12.42 pm ET: Adds details about the deal_

_This is a developing story. Check back for more updates._

_Dear readers, We recognize that politics often intersect with the financial news of the day, so we invite you to click here to join the separate political discussion. [https://seekingalpha.com/article/4836096-politics-and-the-markets-110625]_

MORE ON ELI LILLY, NOVO NORDISK

* Novo Nordisk A/S (NVO) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4838202-novo-nordisk-a-s-nvo-q3-2025-earnings-call-transcript]
* Novo Nordisk: Problems Compound, But Stock Still Cheap (Rating Downgrade) [https://seekingalpha.com/article/4838558-novo-nordisk-problems-compound-but-stock-still-cheap-rating-downgrade]
* Why Novo Nordisk's Q3 Miss Is A Buying Opportunity [https://seekingalpha.com/article/4838525-why-novo-nordisk-q3-miss-is-a-buying-opportunity]
* Lilly’s amylin agonist delivers up to 20% weight loss in mid-stage trial [https://seekingalpha.com/news/4517127-lillys-amylin-agonist-causes-20-weight-loss]
* Pfizer matches Novo bid for obesity biotech Metsera as takeover battle rages - FT [https://seekingalpha.com/news/4516864-pfizer-matches-novo-bid-for-obesity-biotech-metsera-as-takeover-battle-rages---ft]