Eli Lilly and Company ( LLY ) shares are in the spotlight following reports indicating the company is close to finalizing a White House agreement to provide its lowest-dose obesity medications at $149 per month, which could open the door to Medicare coverage and broader reimbursement options.

What Happened: Eli Lilly ( LLY ) and Novo Nordisk ( NVO ) are reportedly getting ready to unveil new pricing agreements with the White House for their popular weight loss drugs. In exchange, the companies could see those treatments covered under Medicare, according to sources cited by Max Bayer at Endpoints News.

The potential agreement, which may be revealed this week, involves the drugmakers providing their obesity drugs’ lowest dosage at $149 each month. This arrangement would unlock Medicare coverage, creating new reimbursement pathways for the companies.

Medicare serves roughly 66 million people and functions as the main insurance provider for individuals 65 and older. Currently, the program’s drug benefits cannot directly cover obesity medications and only reimburse these treatments when prescribed for additional serious health issues like cardiovascular disease or diabetes.

This agreement would represent the most substantial pharmaceutical pricing arrangement between drugmakers and the White House since President Donald Trump advocated for American drug prices matching those in other developed nations. Previous administration deals included Pfizer, AstraZeneca and EMD Serono.

Lilly confirmed it was having “discussions with the administration” regarding pricing and access but provided no additional information. Novo Nordisk ( NVO ) stated it “is engaged in constructive discussions with the Administration regarding the Most Favored Nation executive order” and remains “focused on improving patient access and affordability.”

LLY Analyst Ratings

Eli Lilly ( LLY ) has been receiving a generally positive outlook from analysts. Recently, Cantor Fitzgerald has kept its Overweight rating on the stock, revising its target price upward from $925.00 to $985.00 on Oct. 31. Guggenheim also reiterated its Buy rating twice in October, increasing the target from $875.00 to $948.00.

However, there were some mixed signals too. Morgan Stanley maintained an Overweight rating on Oct. 3, but slightly reduced the target from $1028.00 to $1023.00. Most notably, Berenberg downgraded Eli Lilly ( LLY ) from Buy to Hold on Sept. 17, lowering its target substantially from $970.00 to $830.00. Despite these divergent views, analyst consensus remains largely bullish for Eli Lilly ( LLY ).

LLY Price Action: Eli Lilly ( LLY ) shares are trading up 0.61% at $901.60 at the time of publication on Tuesday, according to Benzinga Pro. The stock is sitting 4.3% below its 52-week high, with the 50-day moving average nudging up to test the 200-day from below.

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