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Lilly, Novo Nordisk Near Deals with White House on Obesity Drugs

  //house-home.news-articles.net/content/2026/02/0 .. ear-deals-with-white-house-on-obesity-drugs.html
  Published in House and Home on Saturday, February 7th 2026 at 12:37 GMT by New Hampshire Union Leader
      Locales: District of Columbia, UNITED STATES

Washington D.C. - February 7th, 2026 - Eli Lilly and Novo Nordisk are on the cusp of reaching agreements with the White House that promise to reshape the landscape of obesity treatment in the United States, according to a source with direct knowledge of the ongoing negotiations. These potential deals, anticipated to be finalized in the coming weeks, center around reducing the prices of their highly successful weight-loss drugs, Wegovy and Mounjaro, and crucially, securing Medicare coverage - a currently unavailable benefit for obesity medications.

The current situation leaves millions of Americans struggling with obesity without access to potentially life-changing treatments. Medicare's existing policies explicitly exclude coverage for obesity drugs, effectively creating a significant financial barrier for seniors and disabled individuals who could significantly benefit from these medications. This exclusion has been a longstanding point of contention for patient advocacy groups and a key target for the Biden administration's push to lower healthcare costs.

For years, the cost of innovative obesity treatments has remained stubbornly high, putting them out of reach for many, even those with private insurance. Wegovy and Mounjaro, both GLP-1 receptor agonists initially developed for type 2 diabetes, have demonstrated remarkable efficacy in clinical trials, leading to substantial weight loss and improved health outcomes. However, their price tags - exceeding $1,300 per month for Wegovy and similarly high for Mounjaro - have fueled public criticism and scrutiny.

The impending agreements represent a potential turning point. While specific details are still being hammered out, the framework appears to involve a two-pronged approach: substantial price reductions from both pharmaceutical companies, coupled with commitments to ramp up production capacity to address existing supply constraints. Demand for both drugs has consistently outstripped supply, leading to frustrating shortages and forcing doctors to ration medications among their patients.

Experts predict the deals will involve tiered pricing structures, potentially linked to income levels or the severity of a patient's obesity. The White House is reportedly prioritizing ensuring access not just for those who can afford the medications, but for those who need them most. This aligns with President Biden's broader healthcare agenda focused on equity and affordability.

"This is a significant moment for public health," stated Dr. Anya Sharma, a leading obesity researcher at the National Institutes of Health. "Obesity is a chronic disease with serious health consequences, including heart disease, diabetes, and certain types of cancer. Providing Medicare coverage for effective treatments like Wegovy and Mounjaro will not only improve the quality of life for millions of Americans, but could also lead to substantial savings in healthcare costs down the line by preventing and managing these associated conditions."

The impact of expanded Medicare coverage is projected to be considerable. Analysts estimate that opening access to these drugs could benefit over 30 million Medicare beneficiaries currently classified as obese. However, some concerns remain. Critics argue that simply lowering the price and expanding access isn't enough; robust educational programs for both physicians and patients will be crucial to ensure appropriate prescribing and responsible medication use. Monitoring long-term health outcomes and potential side effects will also be paramount.

Beyond Medicare, the deals could also exert downward pressure on prices for those with private insurance, and potentially pave the way for broader accessibility across all healthcare systems. The success of these negotiations could serve as a model for addressing the high cost of other innovative drugs in the future. This also puts pressure on other pharmaceutical companies developing similar treatments to adopt competitive pricing strategies.

The White House views this as a major political win, bolstering its commitment to lowering drug costs and improving healthcare for all Americans. Finalizing the agreements will undoubtedly be a key talking point heading into the upcoming election cycle. The details of the finalized deal will be closely scrutinized by stakeholders across the healthcare spectrum, from pharmaceutical companies and insurance providers to patient advocacy groups and policymakers.