Trump declared that he will lower the price of popular weight loss drugs to $150 per month. Hims & Hers Health (HIMS.US) saw its stock price plummet by over 15%.

On Friday, the stock price of weight loss drug companies fell, with Eli Lilly (LLY.US) falling by about 2%; while Hims & Hers Health (HIMS.US), which sells a low-cost version of GLP-1, saw a larger drop of over 15%. Previously, US President Trump stated that his government's goal was to lower the prices of popular GLP-1 weight loss drugs to $150 per month, far below the current price of over a thousand dollars. Trump said, "The same drug costs only $88 to $130 per month in London, but $1300 in New York. In the future, you pay $150, and we pay $150, the price should be the same." When asked which drug he was referring to, Trump replied that it was the popular weight loss drug Ozempic. However, the Director of the Centers for Medicare and Medicaid Services (CMS), Mehmet Oz, clarified on the spot that the government has not reached an agreement with pharmaceutical companies on pricing for GLP-1, saying, "We haven't negotiated yet, we haven't talked about this type of drug yet." The week before, Oz had stated that the government was in "intense negotiations" with weight loss drug manufacturers. Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B were among the 17 large pharmaceutical companies that had previously received a letter from the Trump administration, requesting these companies to align drug prices in the US with those in other developed countries. Pfizer Inc. (PFE.US) and Astrazeneca PLC Sponsored ADR (AZN.US) have already signed pricing agreements in response to the government's initiative. The latest statements from Trump and Oz indicate that the US government is now pressuring to include GLP-1 weight loss drugs in the negotiation list. With demand soaring, the high prices have been limiting the access to GLP-1. A recent survey by the Kaiser Family Foundation shows that only about 20% of large employers offer benefits for this type of weight loss medicine, and two-thirds of them say that this medicine significantly increases prescription costs. Many consumers are turning to the "out-of-pocket market". Currently, Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B offer discounted versions for about $500 per month through their direct sales websites; while remote medical platforms like Hims & Hers offer versions for $130 to $200 per month. If the government lowers the cash price of popular weight loss drugs like Zepbound and Wegovy to $150, it will directly compete with the prices of compounded drugs, impacting the current cash market landscape.