Presidential Vow Plunges Pharma Stocks: Novo Nordisk, Eli Lilly Shares Drop After Trump Targets Weight-Loss Drug Prices

Shares of Novo Nordisk, the Danish pharmaceutical company, dropped sharply in trading on Friday, mirroring declines among its major industry peers. The sell-off came after U.S. President Donald Trump announced plans to significantly reduce the cost of the company’s popular weight-loss medication.

During a White House event on drug pricing and fertility treatments held Thursday, President Trump said that the cost of what he referred to as the “fat loss drug” would “be much lower.” His remarks were widely interpreted as referring to Ozempic, a diabetes treatment that contains the same active ingredient as Wegovy, Novo Nordisk’s prescription medicine for obesity. Although Ozempic is approved for diabetes, it has become a common off-label option for weight reduction in the United States.

In early Friday trading in Copenhagen, Novo Nordisk’s stock declined about 5.6%, while shares of competitors Eli Lilly and Zealand Pharma also fell by roughly 4%. In U.S. after-hours trading, Eli Lilly’s stock decreased 4.62% to about $781.50, and Novo Nordisk’s U.S.-listed shares slid 3.74% to $53.99. Even Hims & Hers Health Inc., a company offering low-cost alternatives to leading weight-loss drugs, saw its shares dip 2.28% to around $57.80.

President Trump reiterated that prescription drug prices in the United States remain significantly higher—typically two to three times the levels seen in Europe—and said his administration intends to negotiate lower costs with pharmaceutical firms. He mentioned that discussions with Novo Nordisk were underway and that he expected the company to agree to lower pricing.

At the same event, Dr. Mehmet Oz, head of the Centers for Medicare & Medicaid Services, confirmed that negotiations with Novo Nordisk were ongoing but not yet finalized. He stated that the talks would continue until the President was satisfied with the final terms.

A Novo Nordisk spokesperson later acknowledged that the company has been in dialogue with the U.S. administration regarding the Most Favored Nation executive order. The spokesperson reaffirmed Novo Nordisk’s dedication to improving patient access and affordability but declined to comment directly on the President’s statements about potential price cuts.