Eli Lilly falls 2% on Novo Nordisk price cut plans

Investing.com -- Eli Lilly (NYSE: LLY) shares fell 2.2% Tuesday morning following a Wall Street Journal report that rival Novo Nordisk plans to slash U.S. list prices for its weight-loss and diabetes drugs Ozempic and Wegovy by up to 50%. Novo Nordisk shares were lower by 3%.

According to the report, Novo Nordisk will reduce prices for both drugs to $675 per month starting Jan. 1, 2027. This represents a 50% cut from Wegovy’s current price and a 34% reduction for Ozempic. The price cuts will also apply to pill versions of the drugs, including Rybelsus.

The move escalates competition between Novo Nordisk and Eli Lilly in the GLP-1 drug category, one of the fastest-growing segments in pharmaceuticals. Millions of patients currently take these medications, though high prices have limited broader adoption due to insurance coverage gaps and elevated out-of-pocket costs.

Jamey Millar, Novo Nordisk’s executive vice president of U.S. operations, said the company is cutting its drugs’ list prices for the first time to reduce costs for patients enrolled in high-deductible health plans or those paying coinsurance based on list price. "Our hope is that reduced prices will lead to better access and affordability," Millar said in an interview.

The price reductions could pressure Eli Lilly to adjust pricing for its competing GLP-1 products in the weight-loss and diabetes treatment market.

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