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weight loss medicine manufacturer Novo Nordisk And Eli Lilly saw their shares Drop on Friday after President donald trump vowed to reduce price Novo’s popular Ozempic Treatment,
Ozempic is approved for the treatment diabetes But it is often used We As a so-called off-label treatment for obesity. It often serves as a general reference for weight loss. drugs,
The drug contains the same active ingredient – semaglutide – as the Danish drugmaker’s blockbuster obesity Treatment Vegovy.
Since taking office in January, Trump has been working to reduce the gap between America and foreign drug pricesUnder the “most favored nation” policy, the U.S. government would require drug manufacturers to charge patients in the country more than those in other wealthy countries.
negotiation lever
news shares fell to a nearly three-week low of 342.30 crowns, and fell 6.3% to 343 crowns. Shares of rivals also fell, with Lilly falling more than 3% and Zeeland Pharma falling nearly 7%. Viking Therapeutics was down about 2%.
Kevin Gade, chief operating officer of investment firm Bahl & Gaynor, said Trump’s comments have investors worried about a worst-case scenario on obesity.
Trump made the comments during a White House event on Thursday, where he announced a deal with Germany’s Merck to cut the cost of some drugs needed for in-vitro fertilization in exchange for protection from future tariffs.
Journalists asked Trump to identify the drug, which he had said earlier in the program would be made less expensive.
“I was referring to Ozempic, or – I was referring to fat loss drugs? … They would be very low,” Trump said.
Trump had previously said that under his administration’s plan, the price of Ozempic would be reduced from $1,300 to $150. The list price for a one-month supply of Ozempic is about $1,000, but it is sold by Novo directly to cash-paying customers for $499 per month.
Mehmet Oz, who runs the Centers for Medicare and Medicaid Services and was at the event Thursday, said the agency has not yet completed negotiations over the price of the GLP-1 class of drugs, which includes Ozempic, Vegovy and Lilly’s Monzaro.
Bernstein analyst Courtney Breen said Trump’s comment seemed like a “negotiating lever,” adding that it would set a new precedent for upcoming oral launches for obesity drugs, leaving little room for price variation.
“We remind investors that we are looking at a private negotiation going on here with the public and the price of $150 has not yet been finalized,” Breen said.
It’s hard to know whether Trump said this to get obese players to the negotiating table or whether he truly believes that will be the ultimate price, Bahl and Gaynor’s Gade said.
A spokesperson for Novo said the company was discussing the “most favored nation” order with the Trump administration.
Lillee also said she was in discussions with the administration and had no specific details to share.
UBS analysts said they had already factored potential US price cuts into their forecasts.
“If the prices stated by President Trump become the negotiated prices, it will be much higher than our numbers,” he wrote.