NVO and LLY Stocks Slide as Trump Signals Price Cuts for GLP-1 Drugs

Novo Nordisk NVO shares fell roughly 4% in pre-market trading today after U.S. President Donald Trump signaled potential steep price cuts for the company’s blockbuster GLP-1 RA drugs during a White House event on Thursday. NVO markets semaglutide-based therapies Ozempic for diabetes and Wegovy for obesity, both of which have been key growth drivers for the company in the past.

At the press conference, when a reporter sought clarification on the President’s remarks about a “$1,300 weight-loss drug,” Trump confirmed that he was referring to Ozempic and a “fat-loss drug,” presumably Wegovy. He further stated that the prices of these drugs, once negotiated, would be “much lower,” suggesting that they could drop to around $150 out-of-pocket for Americans.

Mehmet Oz, head of the Centers for Medicare & Medicaid Services, noted that the government has not yet started formal negotiations on the prices of the GLP-1 class of drugs, which includes Ozempic, but confirmed the process will be rolled out over time. When pressed for a timeline, President Trump said that the prices of these drugs are expected to come down “pretty fast.” Oz emphasized that once negotiations begin, they will continue until the President is “happy with the result.” Novo Nordisk has not yet commented on the claims made by the President on Thursday.

Lowering the cost of Ozempic and Wegovy could greatly expand access for people living with diabetes and obesity, but it also brings questions about how such a shift might affect the economics of drug development and future medical breakthroughs. Trump’s pledge could either pave the way for more affordable treatment options or spark debate over its broader ripple effects — and the outcome is still uncertain.

Please note that although Ozempic is indicated for diabetes treatment, it is often used off-label in the United States for weight loss. Ozempic and Wegovy are both currently priced at $1,000 or more for a month’s supply in the United States. However, Novo Nordisk has launched its online direct-to-patients channel, NovoCare Pharmacy, which offers all doses of Ozempic and Wegovy at a discounted monthly price of $499 for cash-pay patients.

Year to date, NVO stock has plunged 34.7% against the industry’s 5.5% growth.

How the Development Affects NVO’s Competitive Edge

Novo Nordisk has achieved tremendous commercial success with Wegovy and Ozempic in the past. However, the company’s growth trajectory has suffered recently.

In July 2025, NVO revised its sales and profit outlook for the year, reflecting slower-than-expected uptake for Wegovy and Ozempic, due to intensifying competition from arch-rival Eli Lilly LLY and compounded semaglutide alternatives in its largest obesity market, the United States. To tackle the same, Novo Nordisk announced a major restructuring program in September 2025, aimed at streamlining operations and reinvesting in its core diabetes and obesity businesses. The plan includes reducing its global workforce by about 9,000 employees, targeting annualized savings of around DKK 8 billion by 2026.

Amid these challenges, a sharp reduction in the prices of NVO’s core revenue drivers poses a serious threat to its profitability, particularly given that the United States is its largest market for obesity treatments. Pushing GLP-1 drug prices to such low levels could also discourage major pharmaceutical companies like Novo Nordisk from investing heavily in R&D and future innovation.

Novo Nordisk A/S Price and Consensus

Novo Nordisk A/S price-consensus-chart | Novo Nordisk A/S Quote

How Trump’s Comments Affect NVO’s Arch-Rival LLY

Eli Lilly is Novo Nordisk’s fierce competitor in the diabetes/obesity space. LLY’s tirzepatide-based drugs, Mounjaro (for diabetes) and Zepbound (for obesity), have captured rapid demand and market share. Despite being on the market for less than three years, both drugs have become Eli Lilly’s key top-line drivers. In the first half of 2025, they generated combined sales of $14.7 billion, accounting for 52% of LLY’s total revenues. Lilly’s Mounjaro and Zepbound follow a dual mechanism of action as a GIP and GLP-1 RA.

Following Trump’s remarks on Thursday, shares of Eli Lilly also slipped roughly 4% in pre-market trading on Friday, reflecting investor concerns that its GLP-1 therapies may face similar pricing pressure once negotiations with the government begin. Like Novo Nordisk, Lilly currently prices its GLP-1 drugs — Mounjaro and Zepbound — at around $1,000 or more per month. However, the company offers Zepbound at a reduced cash price through its online pharmacy, LillyDirect, at $349 per month for the 2.5 mg dose and $499 per month for higher doses. Mounjaro, however, is not currently available through LillyDirect.

NVO’s Zacks Rank and Stocks to Consider

Novo Nordisk currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the overall medical sector are Chemomab Therapeutics CMMB and ANI Pharmaceuticals ANIP, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Chemomab Therapeutics’ 2025 loss per share have narrowed from $2.40 to 60 cents. Loss per share estimates for 2026 have narrowed from $2.80 to $1.00 during the same period. CMMB stock has plunged 55.1% year to date.

Chemomab Therapeutics’ earnings beat estimates in three of the trailing four quarters, while meeting the same on the remaining occasion, with an average surprise of 26.25%.

In the past 60 days, estimates for ANI Pharmaceuticals’ 2025 earnings per share have risen from $7.25 to $7.29. During the same period, earnings per share for 2026 have increased from $7.74 to $7.79. Year to date, ANIP’s shares have rallied 66.5%.

ANI Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with an average surprise of 22.66%.

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