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Pharmaceutical Titans Exchange Price Reductions for Tariff Exemptions and Commitments to U.S. Production

Pharmaceutical Titans Exchange Price Reductions for Tariff Exemptions and Commitments to U.S. Production

Bitget-RWA2025/11/07 00:16
By:Bitget-RWA

- Trump administration secures $350/month GLP-1 drug price cuts via TrumpRx platform with Eli Lilly and Novo Nordisk . - Medicare/Medicaid now cover obesity drugs for severe obesity patients under $50 co-pay, first in program history. - Pharma firms gain tariff relief, FDA priority reviews, and $10B+ U.S. manufacturing pledges in exchange for discounts. - Novo Nordisk faces Metsera bidding war while Eli Lilly deals with GLP-1 lawsuits amid industry consolidation. - TrumpRx bypasses GoodRx triggers stock dr

The Trump administration has reached a historic agreement with pharmaceutical leaders

and to dramatically reduce the prices of GLP-1 medications used for weight loss and diabetes, signaling a major change in the American healthcare system. Announced on November 6, 2025, the deal will make high-demand drugs such as Wegovy and Ozempic much more affordable for Medicare and Medicaid recipients, as well as those buying directly through the new TrumpRx platform. According to , patients will be able to obtain injectable GLP-1 treatments for as low as $350 per month, with further reductions to $250 expected within two years for uninsured individuals. The agreement also introduces lower prices for oral GLP-1 medications, starting at $150 monthly, as detailed in a , potentially broadening access to these increasingly popular obesity therapies.

The Trump administration has presented this arrangement as a win for consumers, with President Donald Trump calling it a "victory for American patients" during a statement in the Oval Office, according to

.
Pharmaceutical Titans Exchange Price Reductions for Tariff Exemptions and Commitments to U.S. Production image 0
This initiative is in line with Trump’s broader “Most-Favored-Nation” drug pricing policy, which seeks to match U.S. medication costs with those in other advanced countries. With these price cuts, Medicare will now cover obesity medications for patients with severe obesity for the first time, as reported by ABC News. Medicare users will pay a $50 co-payment for these drugs, and Medicaid will also benefit from the same reduced prices, according to the White House.

The negotiations also involved benefits for the drug manufacturers. In return for lowering prices, Eli Lilly and Novo Nordisk secured promises of tariff relief and priority FDA review vouchers for future drug submissions, as noted by Morningstar. Both companies also agreed to invest in U.S. manufacturing, with Novo Nordisk committing an extra $10 billion to expand domestic production, the White House fact sheet stated. These provisions reflect the administration’s dual goals of making medications more affordable while encouraging pharmaceutical production within the country.

This agreement comes at a time of significant upheaval in the pharmaceutical industry. Novo Nordisk is currently engaged in a fierce acquisition battle with Pfizer over the biotech company Metsera, with both sides leveraging political ties, according to MedWatch. Meanwhile, Eli Lilly is dealing with legal disputes related to its GLP-1 products, including a recent lawsuit against Metsera, as reported by Seeking Alpha. These developments underscore the intense competition in the sector, even as lawmakers and regulators push for lower prices.

The TrumpRx platform, which allows consumers to purchase directly, is a key part of the new pricing approach. The government website will guide buyers to the pharmaceutical companies’ own sales pages, bypassing traditional middlemen like GoodRx. This move has been controversial, as

reported that GoodRx will not collaborate with TrumpRx. The announcement led to a 5% drop in GoodRx’s stock price.

At the same time, Novo Nordisk is looking into alternative distribution methods for its GLP-1 drugs. Telehealth provider Hims & Hers has confirmed ongoing negotiations to offer Wegovy through its platform, though no final deal has been made, according to Morningstar. If the partnership moves forward, it could make the drug more accessible to patients seeking telemedicine services, especially as the FDA reviews an oral version of Wegovy, as reported by

.

The administration’s pricing reforms have received both support and criticism. While many welcome the lower prices, some question whether the model can be sustained and what it means for future pharmaceutical innovation. The ultimate impact of the deal will depend on how well it manages to keep drugs affordable while still encouraging research and development. For now, the agreement stands as a significant milestone in Trump’s efforts to lower prescription drug costs, with far-reaching consequences for millions of Americans dealing with obesity and diabetes.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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