Trump’s incoming administration faces a major decision on whether Medicare should cover weight-loss drugs like Wegovy and Zepbound, developed by drugmakers Novo Nordisk (NVO) and Eli Lilly (LLY), respectively, for obesity treatment. These blockbuster medications have gained widespread popularity, but Trump’s key advisers are divided.
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Indeed, Robert F. Kennedy Jr., who has been nominated to lead HHS, has criticized the drugs’ cost and necessity, while Dr. Mehmet Oz, who has been tapped to oversee Medicare and Medicaid, has praised their benefits. Adding to the debate, Elon Musk has voiced strong support for making these medications widely accessible and affordable.
GLP-1 Medications May Become More Accessible for Seniors
Currently, Medicare bans coverage of weight-loss drugs, but a proposed Biden-era rule could change that by making GLP-1 medications more accessible for millions of seniors and expanding coverage under Medicaid.
While the policy could raise short-term costs—estimated between $35 billion and $36 billion over a decade—some experts argue it may lead to long-term savings by reducing obesity-related conditions like diabetes and heart disease. However, others warn that widespread coverage could increase premiums for Medicare beneficiaries.
Ultimately, the final decision could fall to Trump himself. While Kennedy’s leadership at HHS would give him significant sway, a policy of this magnitude would likely draw direct input from the White House.
Which Stock Is Better, Eli Lilly or Novo Nordisk?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that NVO stock has more room to run than LLY. In fact, NVO’s price target of $147.80 per share implies more than 36% upside versus LLY’s 34%.
