Novo Nordisk, Eli Lilly shares fall after Trump promises weight-loss drug price cuts
Shares of Novo Nordisk and Eli Lilly dropped on Friday following U.S. President Donald Trump’s announcement that the price of Novo’s Ozempic — a diabetes drug also used off-label for weight loss — would be reduced.
Ozempic contains semaglutide, the same active ingredient in Novo’s blockbuster obesity treatment Wegovy, making it a key reference point for weight-loss medications in the United States, News.Az reports, citing Reuters.
Under Trump’s “most favored nation” policy, drugmakers will be required to charge U.S. patients no more than they charge in other wealthy countries, prompting investor concerns about potential revenue impact.
Novo Nordisk shares fell nearly 6% to 344.7 Danish crowns, hitting a three-week low.
Eli Lilly dropped 4%, while Zealand Pharma declined 5%.
U.S. pre-market trading saw Viking Therapeutics down nearly 6% and Altimmune down 1%.
Analysts suggested the market reaction might have been exaggerated, as price cuts for semaglutide were already anticipated. UBS and J.P. Morgan noted that potential U.S. price reductions had been partially factored into forecasts, but the announcement still added pressure on investors.
Trump made the remarks during a White House event discussing a deal with Germany’s Merck to lower certain in-vitro fertilization drug costs in exchange for tariff protections.
“I was referring to Ozempic… the fat loss drug. They’ll be much lower,” Trump said when asked by reporters.
Novo Nordisk confirmed it was in discussions with the U.S. administration regarding the most favored nation order.
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