The price of Novo Nordisk’s star drug drops significantly

US drug prices have been the subject of political debate for years. Former US President Donald Trump has repeatedly called on manufacturers to reduce prices and even signed a presidential decree aimed at tying the price of drugs to the lowest price in the world – this ultimately did not come into effect, but the pressure has clearly had an effect on market players. Trump recently threatened to impose tariffs of up to 250 percent on drugs imported into the United States, further creating uncertainty in the industry.

Novo Nordisk’s move comes less than a week after its biggest competitor, Eli Lilly, raised the list price of one of its obesity drugs in the United Kingdom by 170 percent. The two companies are dominant players in the blood sugar and weight loss segments; analysts expect them to account for 87 percent of the weight loss market by 2030. In the race for the top spot last year, American Eli Lilly is currently in the lead, as recently published clinical trial results have confirmed.

Novo Nordisk cut its sales and operating profit expectations for the second time this year at the end of July. The company, which was valued at more than Denmark’s entire GDP a year ago, has been struggling on the stock market for about a year. The decline was accelerated by the release of the first direct clinical data comparing the two major manufacturers’ weight loss products in mid-May, which favored Eli Lilly’s product.

For uninsured or underinsured patients in the US, the $499 monthly price tag could be a significant relief in a market where list prices are typically high and trade discounts are opaque. However, the broader market outlook remains heavily influenced by political decisions (e.g. tariffs) and competitor strategies.