Trump’s Bold Drug Price Target Sends Shockwaves Through Pharma Industry
In a surprise announcement that rocked the pharmaceutical world, former President Donald Trump said he wants to slash the cost of popular weight-loss drugs like Ozempic and Wegovy to just $150 per month — a dramatic drop from the current list prices that can exceed $1,300 in the U.S.
That one sentence was all it took to send stock prices of two major pharmaceutical giants — Eli Lilly and Novo Nordisk — into a tailspin.
But what does it all really mean? Let’s break it down.
What Are GLP-1 Drugs and Why Are They So Popular?
GLP-1 drugs like Ozempic, Wegovy, and Mounjaro were originally developed to treat type 2 diabetes, but they’ve become incredibly popular for one big reason: they help people lose a lot of weight.
These medications have become blockbuster hits, leading to global shortages and long waiting lists. They’ve also brought in billions for drugmakers — but at a steep cost to consumers, with cash prices often over $1,000 per month in the U.S.
Trump’s $150 Price Plan: What He Said
During a public event, Trump compared U.S. drug prices to those in the UK, where he said similar medications are available for as little as $88 a month. He promised to bring American prices down to about $150 so that “we’re paying the same thing.”
When asked specifically which drug he meant, Trump named Ozempic — often referred to as a “fat loss drug” by the public, though it was originally approved for diabetes.
Immediate Fallout: Stocks Sink Fast
As soon as Trump’s statement hit the news, Wall Street reacted — and not kindly.
- Novo Nordisk’s stock dropped around 6%
- Eli Lilly also saw its share price fall sharply
- Even Hims & Hers Health, a company that sells compounded GLP-1 alternatives, took a hit — because $150 for the brand-name versions could undercut even their lower-cost offerings
The market clearly took the statement as a threat to profit margins and pricing power.
But Hold On: No Deal Has Been Finalized
Dr. Mehmet Oz, now serving as the head of the Centers for Medicare & Medicaid Services, quickly stepped in during the event to clarify something critical:
No pricing agreement has been made yet.
According to Oz, negotiations with drugmakers are still underway, and nothing has been finalized for the GLP-1 category. So for now, the $150/month price tag is an ambition, not a reality.
Why This Is a Big Deal
For Patients
If this price cut actually happens, it could change millions of lives. Right now, many people can’t afford GLP-1 drugs unless their insurance covers it. A $150/month price could make these treatments far more accessible — especially for those paying out of pocket.
For Drug Companies
Eli Lilly and Novo Nordisk have made billions off these drugs. If forced to drop prices this steeply, their revenue — and their market value — could take a significant hit. That’s why investors are nervous.
For U.S. Healthcare Policy
This move signals a broader push to bring U.S. drug prices more in line with other countries. It could set the stage for other price control measures and reshape how the pharmaceutical industry negotiates with the government.
What Happens Next?
1. Negotiations
The government has started talks with drugmakers — but there’s no guarantee they’ll agree to Trump’s proposed price. These conversations could stretch on for months.
2. Legal Challenges
Pharmaceutical companies are known for fighting back hard when their profits are threatened. Legal or lobbying efforts to block or soften any price mandates are likely.
3. Industry Response
Companies might:
- Shift focus to other drugs with higher profit margins
- Try to offset lower prices with higher sales volumes
- Cut costs, delay launches, or reduce marketing spend
4. Coverage Decisions
If prices drop, insurers — including Medicare and Medicaid — might expand coverage to more patients. Currently, many insurers limit coverage for obesity-related prescriptions unless there’s also a diabetes diagnosis.
Investors: Be Cautious
The sharp drop in stock prices shows just how sensitive the market is to potential pricing regulation. If more politicians jump on the price-control bandwagon, biotech and pharma stocks could face longer-term volatility.
Still, companies like Eli Lilly and Novo Nordisk have strong pipelines and global demand. Investors should watch for official pricing updates and keep an eye on regulatory developments.
Patients: Stay Informed, Stay Hopeful
If you’re currently using or hoping to start GLP-1 treatment, this could be a huge win. A lower monthly cost would make these medications more accessible than ever.
But don’t expect overnight changes. While the conversation has started, the actual rollout of lower prices may take time — and may not apply to all patients or drugs.
Final Thoughts
Trump’s $150/month proposal for GLP-1 drugs lit a fire under an already hot healthcare topic. Whether or not it becomes reality, it’s clear that drug pricing is no longer off-limits in political debates — and the pharma world is paying close attention.
This may be the start of a new era in how life-changing medications are priced in the U.S. The next few months will be critical for patients, investors, and drugmakers alike.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.