Trump announces price cuts on Wegovy, Zepbound

President Trump announces deal to reduce cost of weight loss drugs

President Trump delivered remarks from the Oval Office Thursday, announcing a deal with pharmaceutical manufacturers Eli Lilly and Novo Nordisk to reduce the cost of certain popular weight loss drugs. The press conference ended abruptly after one of the participants experienced a medical episode.

WASHINGTON - President Donald Trump announced a deal on Thursday with drugmakers Eli Lilly and Novo Nordisk to expand coverage and reduce prices on popular obesity drugs. 

The obsesity treatements Zepbound and Wegovy are part of a new generation of obsesity medications known as GLP-1 receptor agonists. 

Trump reveals deal with drugmakers to lower obesity drug costs

What they're saying:

Trump made the announcement in the Oval Office with drugmakers, calling it a "triumph for American patients that will save lives and improve the health of millions and millions of Americans."

What we know:

Coverage of the drugs for obesity will expand to Medicare patients starting next year, according to the administration, which said some lower prices also will be phased in for patients without coverage.

What we don't know:

Still, it’s unclear how much the price drop will be felt by consumers. Drug prices can vary based on the competition for treatments and insurance coverage.

Trump administration’s effort to rein in high drug prices

Why you should care:

Access to the drugs has been limited because of their costs — around $500 a month for higher doses — and spotty insurance coverage.

What they're saying:

On Thursday, the AMA applauded the Trump administration for its efforts to lower the weight loss drug prices and increase coverage for Americans.

"Reducing the cost and leveraging the scale of Medicare and Medicaid to boost access to game-changing weight loss drugs is a transformative step in the battle against chronic disease and obesity," Bobby Mukkamala, the president of the American Medical Association, said in a statement. "The American Medical Association (AMA) applauds the Trump Administration for its leadership in making these breakthrough drugs more affordable and accessible to our patients – a key priority for the AMA."

He added: "Obesity is a complex disease that requires evidence-based treatment. Expanding access to effective therapies such as GLP-1 medications represents a significant step forward in confronting an obesity epidemic that now affects more than 40 percent of adults in the United States. These medications not only support weight loss but have also proven effective in reducing the risk of type 2 diabetes, cardiovascular disease, stroke, and other chronic conditions."

The backstory:

Thursday’s announcement is the latest attempt by the Trump administration to rein in soaring drug prices in its efforts to address cost-of-living concerns among voters.

The agreement builds on an executive order Trump signed in May that set a deadline for drugmakers to electively lower prices or face new limits on what the government will pay. Trump had suggested that a series of deals with drug companies would subsequently be coming.

In July, Trump sent 17 letters to pharmaceutical companies on Thursday in an effort to reduce drug prices for Americans.

Wegovy, an injectable prescription weight loss medicine, that has helped people with obesity. (Credit: Michael Siluk/UCG/Universal Images Group via Getty Images)

According to the letter, the order was intended to "stop global freeloading and guarantee that Americans pay the same prices enjoyed by other developed nations."

RELATED: Trump gives drug companies deadline to lower ‘abusive’ prices

"This unacceptable burden on hardworking American families ends with my administration," Trump wrote, according to Press Secretary Karoline Leavitt. "The only thing I will accept from drug manufacturers is a commitment that provides American families immediate relief from the vastly inflated drug prices, and an end to the free ride of American innovation by European and other developed nations."

Accordingly, Trump called on the drug companies and manufacturers doing business to guarantee most favored nation pricing for newly launched drugs and Medicaid with the next 60 days, return increased revenues abroad to American patients and taxpayers, and provide for direct purchasing at most favored nation pricing.

Last month, AstraZeneca became the second major pharmaceutical manufacturer to announce it had agreed to lower the cost of prescription drugs for Medicaid. Pfizer announced a similar agreement in September.