(MENAFN- Live Mint) Weight loss drug makers Eli Lilly and Novo Nordisk on Thursday secured deals with the Trump administration to reduce prices for their popular weight-loss drugs.

The prices of so-called GLP-1 drugs for Medicare and Medicaid beneficiaries will be effective from January 2026 - on administration's direct-to-consumer website, upon its launch.

“It's a triumph for American patients that will save lives and improve the health of millions and millions of Americans,” Donald Trump told reporters in the Oval Office.

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- Ozempic and Wegovy prices will fall from $1,000 and $1,350 per month, respectively, to $350.

- Zepbound and Orforglipron, if approved, will fall from $1,086 per month to an average of $346.

The White House said that in the event that the FDA later approves the Wegovy pill, or certain similar 'GLP-1' drugs in each company's pipeline intended to be taken orally rather than as a shot, the initial dose of those drugs will be priced at $150 per month through TrumpRx.

Mike Doustdar, chief executive officer of Novo Nordisk, said in a statement that“Novo Nordisk has always worked to secure affordable access to our innovative medicines, and today's announcement will bring semaglutide medicines to more American patients at a lower cost."

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Under the new arrangement, consumers who are overweight and have prediabetes, have had a stroke or other cardiovascular disease will be eligible, reported CNN.

Medicare prices

- The Medicare prices of Ozempic, Wegovy, Mounjaro, and Zepbound will be $245.

- Medicare beneficiaries will pay a co-pay of just $50 per month.

Lilly Chief Executive Officer Dave Ricks in a statement called the announcement a pivotal moment in US health care policy that was“made possible through collaboration with the Trump Administration.”

Commercial health insurers would also be able to access prices estimated to be 25% lower than current cash prices, reported Reuters quoting officials.

The official added that the government will also expand coverage for GLP-1s under the deal, to overweight patients with prediabetes or heart problems, obese patients with comorbidities and severely obese patients, accounting for 10% of Medicare patients.

Also Read | Why Pfizer can still prevail in the obesity fight with Novo Nordisk Prices of diabetes medicine to drop

Eli Lilly will provide Trulicity, a commonly used diabetes medicine, at $389 per month, a discount of $598 off of the list price, said the White House.

Whereas, Novo Nordisk will provide widely-used insulin products, including NovoLog and Tresiba, at $35 per month of supply.

Novo Nordisk, Eli Lilly commit additional investments

Novo Nordisk has committed an additional $10 billion investment to strengthen its domestic footprint. Whereas, Eli Lilly has announced at least $27 billion in new US manufacturing investments.

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