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MFN Pricing Updates
- Jana Chisholm
- 3 hours ago
- 5 min read
The newest pharmaceutical behemoths to reach MFN pricing agreements with the White House are Eli Lilly and Novo Nordisk, who have agreed to sell their weight-loss medications to Americans at reduced costs.
In May, Trump issued an executive order outlining his MFN pricing strategy. In July, he intensified the debate by sending a series of letters to 17 of the biggest pharmaceutical companies in the world. In particular, the letters demanded that pharmaceutical companies provide MFN prices to all Medicaid patients and promise not to set lower prices for medications in other comparator nations than those in the United States.
Eli Lilly’s pricing agreement, which was released last week, includes injectable Zepbound (tirzepatide) and orforglipron, an unapproved once-daily oral therapy for obesity. Through Lilly’s direct-to-consumer (DTC) channel, self-paying patients will have discounted access to Zepbound, orforglipron, and several additional medications. According to Lilly, the pricing will be comparable to that found in Europe.
Novo stated that the deal covers its diabetic medication Ozempic and obesity treatment Wegovy, which will be made available through Medicaid and Medicare Part D, but it did not disclose the rates it will charge in the United States. Novo further stated that it anticipates the deal to have a low single-digit negative impact on global sales growth in 2026. During a news conference, President Trump announced that both firms’ injectable obesity services will be available to Medicare patients for $50 per month. Robert F. Kennedy Jr., the secretary of the Department of Health and Human Services, praised Lilly and Novo and stated that the deals will cost Americans 125 million pounds by this time next year.
The agreements follow weeks of negotiations between Pfizer, AstraZeneca and the administration to reduce the cost of many of their medications in the United States. The agreements are a reaction to Trump’s most favoured nation (MFN) initiative, which aims to bring American prescription medicine costs into line with those of other developed countries. Additionally, Lilly stated that it will provide its diabetic medications Trulicity and Mounjaro at a 50% to 60% discount to current list pricing via its DTC platform, LillyDirect. Zepbound will be sold through LillyDirect for $299 to $449 a month, depending on dose. In the meanwhile, the lowest dosage of orforglipron will cost $149. The company’s migraine medication, Emgality, will also be included in the Lilly pricing agreement.
Pfizer received a three-year grace period from the government, during which it will not be subject to Section 232 duties on pharmaceutical imports. Additionally, Lilly and Novo stated that a three-year tariff relief term is part of their agreements with the government. Furthermore, the FDA stated today that it has awarded national priority vouchers to Novo for its application for an additional indication for Wegovy and to Lilly for its application for approval of orforglipron. Four additional businesses received coupons from the regulator. The Commissioner’s National Priority Review Voucher (CNPV) program expedites the application review process and is awarded to businesses that are thought to be operating in the best interests of the country or in areas where there is an unmet public need. Through the CNPV mechanism, fifteen vouchers have been issued.
Pfizer was the first pharmaceutical company to reach an agreement with the White House five weeks ago, agreeing to supply some prescription medications at lower MFN costs. Additionally, the business declared its intention to take part in TrumpRx.gov, the upcoming federally run DTC drug purchase portal.
Astra Zeneca and qualified patients with prescriptions for chronic illnesses in the United States came to an agreement last month to reduce costs. Additionally, the British business consented to sell a few medications via TrumpRx.gov.
Additionally, EMD Serono, the American division of Merck KGaA in Germany, has consented to use TrumpRx to offer its reproductive treatments at steep discounts.
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Eli Lilly has been one of the more aggressive biopharma businesses in expanding its U.S. supply chain during the final nine months of the industry’s onshoring drive. The corporation is now prepared to spend some money in Europe after making a number of significant production commitments in the United States this year. According to the firm, Lilly is investing $3 billion to build an oral medication production facility in Katwijk, Netherlands.
The facility would eventually employ 500 workers and increase the company’s capacity to create oral medicines, such as the upcoming GLP-1 tablet orforglipron. By the end of the year, the company intends to submit regulatory applications for orforglipron in obesity.
In Europe, Lilly now has four locations - France, Ireland, Italy, and Spain. The business announced plans to build a new injectables production facility in Germany in 2023, with an anticipated 2027 launch date. Last year, the pharmaceutical company announced a $1 billion expansion in Limerick, Ireland.
Lilly’s manufacturing expansion program has placed a strong emphasis on its home nation throughout 2025. The corporation has announced plans to modernise a plant in Puerto Rico and build massive facilities in Virginia and Texas in recent months.
Lilly announced back in February that it would invest $27 billion to build four new, enormous plants in the United States. Now that the sites in Virginia and Texas have been chosen, the business intends to make them public.
In addition, Lilly has set aside $1 billion to use local contractors to increase its production capacity in India. The company’s financial performance in recent years has been directly correlated with the increase in manufacturing spending, as it has taken the lead in the highly sought-after obesity market from first-to-market Novo Nordisk. After only receiving FDA approval in 2022, Lilly’s dual-action obesity and diabetes blockbuster tirzepatide sold $10.1 billion in the most recent fiscal quarter. The medication has surpassed previous sales leader Keytruda from Merck & Co. to become the best-selling medication globally.
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