Lilly(US:LLY) NBC News·2025-11-07 01:21Agreement Overview - Eli Lilly has reached an agreement with the Trump Administration to provide its weight loss medication, Zepbound, to Medicare beneficiaries for $50 per month, a significant reduction from the current out-of-pocket cost of $500 per month [3][4] - The agreement also includes a commitment from the Trump Administration to expedite the FDA approval of Eli Lilly's oral GLP-1 medication, orforglipron [19][20] - In return for lower prices, Eli Lilly anticipates increased volume and broader access to its medications [22] Pricing and Access - The $50 per month price point will be available to all Medicare beneficiaries [4] - Eli Lilly plans to offer the same pricing to states for Medicaid beneficiaries, of which there are 90 million people [6] - The company also intends to introduce new offers for Zepbound and orforglipron in the private market and ACA plans [7] Manufacturing and Supply - Eli Lilly has invested $27 billion in U S plants and factories and hired tens of thousands of workers to address manufacturing shortages and ensure sufficient supply of its medications [11] - The company is confident in its ability to supply the increased demand resulting from the agreement [11] International Pricing - Eli Lilly acknowledges that Americans have been paying more for medications than people in other wealthy countries [14] - The company has agreed to equalize prices for weight loss medications like Zepbound and for all new medicines going forward [14] - Eli Lilly seeks government support to improve trade terms with European countries, which currently force the company to lower its prices [15][16] Impact and Future Outlook - Eli Lilly estimates that the agreement could benefit 30 to 40 million people in Medicare alone [26] - The company aims to expand access to its weight loss medications to the vast majority of Americans at low out-of-pocket costs [27] - The company believes this deal will significantly address the chronic disease crisis in Medicare [3]