Benzinga·2025-10-17 14:19Core Insights - President Trump's proposal to reduce the price of Novo Nordisk's Ozempic from approximately $1,300 to $150 could significantly impact the GLP-1 market and healthcare valuations across major pharmaceutical companies [1][2][3] Novo Nordisk - The discussions regarding price cuts have positioned Novo Nordisk as a focal point in the administration's cost-reduction efforts, with the company confirming talks under the Most Favored Nation executive order [2] - The semaglutide franchise, which includes Ozempic and Wegovy, is projected to account for over 50% of Novo Nordisk's revenue in 2024, indicating that potential price caps could severely affect profit margins [3] Eli Lilly - Eli Lilly, which has GLP-1 drugs like Mounjaro and Zepbound, may face pressure to adjust pricing in response to Novo Nordisk's potential price cuts, risking public backlash if it does not comply [4] - A 20% reduction in average selling prices could lead to a loss of several billion dollars in projected operating income for Eli Lilly in 2025 [5] Other Pharmaceutical Companies - Trump's pricing strategy may provide opportunities for other pharmaceutical companies like Pfizer and Amgen, which could benefit from a shift in investor focus towards lower-cost alternatives [6] - Pfizer, which has struggled with its oral GLP-1 candidate, might regain traction if pricing caps create a more competitive environment [6] - Amgen, developing a dual-agonist version of GLP-1, could also see increased interest as investors look for next-generation solutions [6] Market Dynamics - The proposed price cuts could lead to a significant reshuffling in the weight-loss pharmaceutical market, with Novo Nordisk and Eli Lilly potentially losing their competitive edge while Pfizer and Amgen could emerge as new leaders [7]