Novo Nordisk, the pharmaceutical company behind the popular weight-loss drug Ozempic, has announced a new agreement aimed at reducing medication costs for millions.

On Wednesday, the Danish company revealed it had reached a deal to cut the price of semaglutide, the key component found in both Ozempic and Wegovy.

While Novo Nordisk has yet to disclose exact pricing details, insiders have informed the Washington Post that prices could drop to as low as $149 monthly in certain instances.

Currently, the monthly cost of Ozempic is roughly $1,000, while Wegovy can reach about $1,800. However, these prices can be decreased through insurance and discount programs.

The same sources mentioned that some Medicare plans, which serve 60 million Americans aged 65 and over, will include coverage for these medications.

The anticipated price reductions are scheduled to come into effect in 2027, though a specific date has not been confirmed.

Physicians speaking with the Daily Mail said while lowering the cost of Ozempic and Wegovy will likely improve obesity rates, users should be cautious about needing to take the drugs for long periods of time, as well as side effects.

Dr Stuart Fischer, an internal medicine physician in New York, told the Daily Mail: ‘It will be good and bad. It’s good because it helps with obesity and because obesity is one of the biggest crises in American health, and the repercussions are horrible. 

‘But it’s bad because the weight loss is often not permanent,’ he added, referencing rebounds patients often have if they stop taking the medication. 

Novo Nordisk has announced a deal to lower the price of semaglutide, the active ingredient in Ozempic and Wegovy (file photo)

Recent figures suggest up to three in four GLP-1 users stop taking the drugs within the first year.  

The announcement comes a day after White House sources said Novo Nordisk and drugmaker Eli Lilly, which makes Zepbound and Mounjaro, were expecting to announce deals this week with the Trump administration to cut prices of their weight-loss drugs in exchange for Medicare coverage. 

Medicare is able to cover Ozempic and Wegovy for diabetes and Zepbound for sleep apnea, but the coverage does not extend to weight loss. 

In September, the Trump administration announced it has made a deal with pharmaceutical giant Pfizer to lower the cost of ‘virtually Pfizer’s entire portfolio of drugs.’ 

Officials said these drugs would be offered at lower prices on TrumpRx, a ‘site soon to be launched.’ 

Experts at Epic Research evaluated over 20,000 patients taking semaglutide, the active ingredient in Ozempic and Wegovy. They found that after 12 months, one in five gained all of the weight they had lost back

That plan will adopt ‘most-favored-nation’ drug pricing, which searches for the lowest available medication price in other developed nations and adopts it. 

The TrumpRx site is not yet available. 

Spokespeople for Novo Nordisk and Eli Lilly confirmed to the Washington Post that the companies were engaging in discussions with the administration but did not answer further questions. 

The drug deal for Ozempic, Wegovy and other GLP-1 agonists is tied to a pilot program that is being developed by Medicare’s innovation center, which would cap the cost of the medications for some Medicare beneficiaries, sources told the Washington Post. 

Medicare beneficiaries in the US are over 65 years old, a population in which one in three are obese. Dr Fischer noted that this group may be less disciplined on a GLP-1 agonist due to a lifetime of poor lifestyle habits.

He said: ‘This group is more likely to have ingrained bad habits and is much less likely to have a strict diet.’

Novo Nordisk has not unveiled officials prices, but sources told the Washington Post that GLP-1s could be as low as $150 per month (file photo)

While GLP-1s do improve obesity and conditions like diabetes, Dr Fischer warned lowering calories and regularly exercising is still necessary to benefit fully.  

Eli Lilly said it is also planning to submit its in-development obesity drug orforglipron to a Trump administration program meant to fast-track drug approvals. Trump officials said companies moving to lower their prices will receive priority vouchers to expedite FDA reviews when applying for federal drug approval. 

Trump told reporters on October 16 in an announcement on lowering the costs of in vitro GLP-1 drugs: ‘Instead of $1,300, you’ll be paying about $150.’ 

Mehmet Oz, head of the Centers for Medicare and Medicaid Services, however, noted that negotiations on GLP-1 drugs were not yet complete.