Nov 6 (Reuters) - Shares of obesity drugmakers Eli Lilly ( LLY )

and Novo Nordisk rose early on Thursday in

anticipation of a White House deal that would reduce prices of

their blockbuster weight-loss treatments in return for expanded

market access.

Denmark's Novo, which is also locked in a bidding war with

Pfizer ( PFE ) over U.S. obesity biotech Metsera ( MTSR ), rose

around 3%, while Eli Lilly ( LLY ) was trading marginally higher before

the U.S. market open.

Novo's Wegovy and Eli Lilly's ( LLY ) Zepbound are the only highly

effective GLP-1 based weight-loss drugs sold mainly in the U.S.

as weekly injections.

List prices top $1,000 a month, though both offer cash

buyers a $499 monthly supply. Novo was first to market, but

Lilly's Zepbound is catching up fast.

The move is aimed at increasing access to the treatments

through U.S. Medicare and Medicaid programs, but analysts said

the pricing framework could disproportionately benefit Lilly,

solidifying its lead over Novo in the weight-loss market.

BMO Capital analyst Evan Seigerman said Lilly's dominance in

the GLP-1 space continues to deepen, with physicians and

patients increasingly favoring its drugs.

"A potential deal with the Trump administration's

direct-to-consumer platform, TrumpRx, could further accelerate

Lilly's momentum," he said, as expanded government coverage more

than offsets any decline in net pricing.

Drug pricing has been a cornerstone of President Donald

Trump's second-term agenda and the rollout of a

direct-to-consumer channel marks a major shift in U.S.

healthcare distribution.

By bypassing pharmacy benefit managers, the initiative aims

to cut costs and expand access, aligning with Trump's pledge to

lower prescription drug prices.

Several drugmakers, including Pfizer ( PFE ) and AstraZeneca ( AZN )

, have signed on through new agreements tied to the

TrumpRx platform

Deutsche Bank analysts see the deal as a potential catalyst

for Lilly's growth. They expect that a $150 monthly cap could

unlock access for up to 15 million Americans, mainly among the

20% of obese adults who are needle-phobic, a segment Lilly could

capture with its upcoming oral GLP-1 pill, Orforglipron.

Both Lilly and Novo are racing to bring oral versions of

their blockbuster GLP-1 treatments to market. Novo's once-daily

oral Wegovy is under U.S. FDA review with a decision expected in

late 2025, while Lilly's Orforglipron is set for regulatory

submission by the end of 2025 and a potential launch in 2026.

"orfirglipron's lower cost could give the company free rein

in the near term," Deutsche analysts said, rapidly matching or

exceeding Zepbound's current 2.7 million U.S. patients.