The Trump administration has targeted high-priced weight-loss medications, such as Wegovy and Zepbound, as part of its efforts to lower prescription drug costs. The administration’s new executive order calls on drug manufacturers to bring prices in line with those in other developed countries. If they do not comply, the government will impose stricter regulations, including tariffs and export restrictions.
During the signing ceremony, President Trump shared a conversation with a businessman who had been shocked by the price difference between the U.S. and other countries for weight-loss treatments. The businessman complained that while he paid \$88 for the drug in London, the same medication cost him \$1,300 in New York, despite being made in the same plant by the same company.
Wegovy, a weight-loss drug from Novo Nordisk, and Zepbound from Eli Lilly both carry monthly U.S. list prices over \$1,000. While many insured patients have a portion of the cost covered, others without insurance must pay a cash price of \$499 a month. The high cost of these medications has drawn criticism, especially since nearly 40% of Americans suffer from obesity. U.S. politicians and healthcare experts have been calling for the companies to make these treatments more affordable.
A White House official said the executive order will focus on drugs that have the largest price disparities and the highest spending. Given that weight-loss drugs like Wegovy and Zepbound fall into these categories, they are likely to be a primary target for price reductions. If these companies do not lower prices, the administration plans to use additional policy measures to force them down.
In response, Eli Lilly stated that they support fairer pricing across developed countries but emphasized that a reduction in U.S. drug prices is only possible if middlemen, such as pharmacy benefit managers, take a smaller share of sales. Novo Nordisk also agreed that Americans need better access to affordable medications and pledged to continue engaging with policymakers.
In countries with government-run healthcare systems, drug prices are generally negotiated to be lower. For instance, the monthly price for Zepbound in Japan is about \$61.68. However, access to these weight-loss drugs remains limited in some countries, such as the UK, where they are not widely available through the National Health Service, or Germany, where they are not covered for weight loss treatment.
Benedic Ippolito, a senior fellow at the American Enterprise Institute, noted that these pricing issues affect many people using GLP-1 drugs like Wegovy and Zepbound. Meanwhile, many U.S. patients have relied on cheaper generic versions of GLP-1 drugs produced by compounding pharmacies, but the FDA is now cracking down on this practice as brand-name medications are no longer in shortage.
The controversy over the pricing of weight-loss drugs is expected to continue as the administration pushes for reform.
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