Eli Lilly, Novo Nordisk Shares Rally As Trump Administration Reportedly Plans To Experiment Including Weight-loss Drugs Under Medicaid, Medicare

Shares of Eli Lilly And Co. (LLY) and Novo Nordisk (NVO) jumped on Friday following reports that the Trump administration is planning a five-year experiment under which Americans on Medicare and Medicaid could get access to expensive weight loss drugs.

The Washington Post reported on Friday, citing documents, that state Medicaid programs and Medicare Part D insurance plans will be able to voluntarily choose to cover Ozempic, Wegovy, Mounjaro, and Zepbound for patients for “weight management” purposes as per the plan.

On Stocktwits, retail sentiment around both LLY and NVO trended in the ‘extremely bullish’ territory, coupled with ‘extremely high’ message volume.

A Stocktwits user expressed optimism for NVO stock.

Another user believes the government plan is a “win-win.”

While Ozempic and Wegovy are drugs by Novo Nordisk, Mounjaro and Zepbound belong to Eli Lilly. The experiment will also include Lilly’s Orforglipron if it is approved in 2026, the report noted. 

The report added that the experiment will be conducted through the Center for Medicare and Medicaid Innovation and is expected to start in April 2026 for Medicaid and in January 2027 for Medicare plans.

The proposal isn’t final, The Washington Post noted, while adding that the administration could solicit public feedback on it before approval, though it is not necessary. It is also unclear how many states and drug plans might choose to participate in the experiment, the report said.

The Trump administration had said in April that neither Medicaid nor Medicare would cover GLP-1 class drugs for weight loss.

While LLY stock is down by 2% this year, NVO shares have lost 44%.

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