GLP-1 stocks wilt following Trump comments
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GLP-1 drug stocks slumped today after President Trump signaled plans to drive down the price of at least one of the blockbuster weight-loss and diabetes treatments.
Why it matters: GLP-1 drugs remain cost prohibitive for many Americans as Medicare and many private insurance plans don't cover them for weight loss purposes.
Catch up quick: Trump said late Thursday that the price of Novo Nordisk's Ozempic will soon be "much lower."
- "Those are going to be $150 out of pocket," he told reporters, referring to the monthly cost of a drug whose list price is about $1,000, per Reuters.
The impact: Shares of Novo and Eli Lilly, which makes Zepbound and Wegovy, fell 3.1% and 2%, respectively Friday.
- Shares of Viking Therapeutics, which is developing GLP-1 drugs, fell 3.4%.
The big picture: The Trump administration wants pharmaceutical companies to commit to "bring American drug prices in line with the lowest paid by other developed nations" in a policy known as "most favored nation."
- Pfizer recently agreed to offer almost all of its drugs to Medicaid at "most-favored nation" prices and said it wouldn't charge more in the U.S. for new drugs it launches than in other wealthy countries.
What they're saying: A Novo spokesperson told Reuters that the company "has engaged in discussions with the Administration regarding the Most Favored Nation executive order."
What we're watching: How much Medicare will pay for Ozempic after it finishes negotiating the price with Novo.
- Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, said yesterday that CMS hasn't finished talks with the company.
