03:59 PM EST, 11/06/2025 (MT Newswires) -- Eli Lilly ( LLY ) and Novo Nordisk ( NVO ) will reduce US prices for their popular weight-loss and diabetes drugs and receive tariff relief under agreements reached with the Trump administration.

The price of Novo Nordisk's ( NVO ) Wegovy obesity drug and the Ozempic diabetes treatment will drop to $350 from $1,350 and $1,000, respectively, under the upcoming TrumpRx program, the White House said Thursday. The price of Lilly's Zepbound and Orforglipron drugs will fall to an average of $346 from $1,086 when purchased through TrumpRx. Lilly manufactures Zepbound for weight-loss treatment, and has been evaluating Orforglipron to treat diabetes and obesity.

Lilly said it will get a three-year tariff relief and will not be subject to future pricing mandates. "This agreement adds to our established commitment to affordability," Lilly Chief Executive David Ricks said in a separate statement.

The company's shares were up 1.2% in Thursday late-afternoon trade. The stock has gained 21% so far in 2025.

Separately, Novo Nordisk ( NVO ) said that following the deal with the Trump administration, it expects to receive a tariff exemption for three years. The Danish drugmaker said it projects a "direct, negative low single-digit impact" on global sales growth next year.

Novo Nordisk's ( NVO ) New York Stock Exchange-listed shares were 4% lower ahead of market close.

"Today's announcement will bring semaglutide medicines to more American patients at a lower cost," Novo Nordisk ( NVO ) CEO Mike Doustdar said. "Importantly, this also expands obesity medication access in Medicare."

The Medicare prices of Ozempic, Wegovy, Mounjaro and Zepbound will be $245, while state Medicaid programs will be able to access to the medications at the same prices. Medicare beneficiaries will pay a co-pay of $50 a month, the White House said.

Novo Nordisk ( NVO ) has committed an additional $10 billion investment to bolster its US domestic footprint, while Lilly has announced at least $27 billion in new US manufacturing investments, according to the White House.

The Trump administration has recently announced five deals with major pharmaceutical manufacturers, including Pfizer ( PFE ) and AstraZeneca ( AZN ) , under its "most-favored-nation," or MFN, pricing policy.

"The agreement also provides that Eli Lilly ( LLY ) and Novo Nordisk ( NVO ) will guarantee MFN prices on all new medicines that they bring to market, repatriate increased foreign revenue on existing products, and provide every state Medicaid program in the country access to MFN drug prices on their products," the White House said Thursday.

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