Two of the biggest stories in the past year for the pharmaceutical industry have been the continued rise of GLP-1 medications and the administration’s efforts to force the pharmaceutical industry to lower drug costs. Now, thanks to an offhand remark from the President, both stories are colliding in way that’s impacting the shares of major pharmaceutical companies.

What did President Trump say about GLP-1 drug prices?

During a White House event on Friday, October 17, President Trump stated that Ozempic, which he referred to as “the fat loss” drug, would have its price lowered.¹ During the same event, however, CMMA director Dr. Mehmet Oz clarified that the government was still actively negotiating the price of GLP-1 drugs. While the drugs are popular for their use in weight loss, they primarily treat diabetes, among other indications.

This is likely complicating the negotiation process, as the cost of the drug or its coverage could potentially depend on how its prescribed or the intended use.

According to a report from Reuters, the President claimed that these drugs would cost $150 out-of-pocket. As of the time of this report, the list price for Ozempic is $1,000 for a month’s supply. Novo also offers the medication DTC for the discounted price of $499-a-month.

As has been the case with other statements made by the President, his words are having an impact on the market before any official action is taken. Shares for both Novo Nordisk and Eli Lilly fell after the comments, according to a report from Reuters.² The news outlet states that Novo’s shares dropped 7% on Friday, while Lilly’s fell 4.3%.

According to analysts, weight loss medications face a unique situation. While many are covered by insurance companies to treat diabetes, it can be difficult for patients to get the medication covered for weight loss. While this has led the drugs to become popular offerings in DTC programs, where manufacturers can offer whatever discount they feel is appropriate.

However, GLP-1 medications still exist in the same ecosystem as other prescription drugs. They have a high list price, which is then negotiated down through rebates and discounts for insurance purposes.

While the exact details of the deals made with Trump’s administration and multiple pharma companies have not been publicly revealed, it’s generally known that drugs are being offered on TrumpRx with a discount on the list price. While it’s still early, these discounts appear to satisfy the President’s demands that prices be lowered. However, most drugs are still obtained through prescription services. This means that the negotiated discounts would only impact people attempting to purchase medication directly.

This creates a unique problem for GLP-1 medications. While both Lilly and Novo offer their GLP-1s as part of their DTC programs, but companies offer the drugs at a much higher cost than the $150-a-month that the President promised. While other drugmakers have been able to negotiate discounted rates for the President’s program without having a negative impact on their stock, analysts expect this to have a larger impact on the profits of GLP-1 medications.

Sources

1. Trump says price of Ozempic will be lowered. Reuters. October 17, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/trump-says-price-ozempic-will-be-lowered-2025-10-16/
2. Novo, Lilly's shares drop as Trump vows weight-loss drug price cuts. Reuters. October 17, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-shares-fall-5-after-trump-vows-weight-loss-drug-price-cut-2025-10-17/