By Fineline Cube 
Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) announced a historic agreement with the U.S. Administration that will lower out‑of‑pocket costs for their obesity medicines beginning in 2026 and expand coverage through Medicare, Medicaid and the private LillyDirect channel. In exchange, both companies receive three years of tariff relief and are exempt from future federal pricing mandates.
1. Key Elements of the Agreement
| Aspect | Details |
|---|---|
| Effective date | As early as 1 April 2026 |
| Price cap for Medicare beneficiaries | ≤ $50/month for Lilly’s Zepbound (tirzepatide) multi‑dose pen and orforglipron (once‑daily pill) |
| State Medicaid | Ability to add Zepbound and orforglipron to Medicaid formularies |
| Self‑pay channel (LillyDirect) | Zepbound pen: $299 (lowest dose) – $449 (highest dose) $50 discount vs. current U.S. list price; Orforglipron: $149 – $399 |
| Additional Lilly products | Emgality, Trulicity, Mounjaro offered at 50‑60 % off list price |
| Novo Nordisk drugs | Wegovy, Ozempic (semaglutide) added to Medicare Part D, Medicaid and direct‑to‑patient cash channel |
| Tariff relief | 3‑year exemption for both companies |
| Pricing mandate protection | Companies will not be subject to future federal price‑setting rules |
2. Pricing Snapshot (U.S. Direct‑to‑Patient)
| Product | Lowest Dose (USD) | Highest Dose (USD) | Discount vs. Current List |
|---|---|---|---|
| Zepbound (tirzepatide) multi‑dose pen | $299 | $449 | $50 off |
| Orforglipron (once‑daily pill) | $149 | $399 | – |
| Emgality (galcanezumab‑gnlm) | 50 % off listed price | — | – |
| Trulicity (dulaglutide) | 55 % off listed price | — | – |
| Mounjaro (tirzepatide) | 60 % off listed price | — | – |
Pricing aligns with European reference rates, improving affordability for U.S. patients.
3. Market Impact
- Revenue outlook: Novo Nordisk estimates a low single‑digit negative impact on global sales growth for 2026, reflecting the price concessions.
- Volume upside: The Medicare Part D pilot is expected to enroll the majority of Part D beneficiaries, potentially driving higher utilization that could partially offset margin compression.
- Competitive positioning: By securing tariff relief and price‑cap protection, Lilly and Novo Nordisk lock in a price‑advantaged foothold against emerging biosimilar and small‑molecule competitors in the obesity space.
4. Analyst Reaction
- Equity movement: Both stocks rose modestly in early trading (Lilly +0.9 %, Novo Nordisk +0.7 %) as investors weighed the trade‑off between lower prices and expanded market access.
- Sell‑side notes: Several analysts upgraded the “Obesity‑Therapeutics” segment to Outperform, citing the policy‑driven volume boost and tariff shield as catalysts for long‑term growth.
Forward‑Looking Statements
This release contains forward‑looking statements regarding the pricing agreement, market impact and financial expectations of Eli Lilly and Novo Nordisk. Actual results may differ due to risks and uncertainties described in the companies’ most recent SEC filings.-Fineline Info & Tech