Senator Ruben Gallego (D-AZ) pressed pharmaceutical manufacturers Eli Lilly and Novo Nordisk for answers on their recent agreement with the Trump Administration on anti-obesity medications.
The two companies manufacture Zepbound and Mounjaro, which are used to treat type 2 diabetes and help induce weight loss. President Donald Trump recently announced that he secured an agreement with them to sell these products through the TrumpRx system at reduced prices equivalent to the lowest paid in other developed countries ("most favored nation"), which buyers pay for out of pocket.
However, according to Sen. Gallego, details remain sparse, and Medicaid is already negotiating prices with these companies for the exact same products.
"While I support the expansion of Medicare coverage for anti-obesity medications," said Sen. Gallego, "it raises concern that few details about this deal have been made public, and that in return for this arrangement, Eli Lilly will receive a three-year exemption from Section 232 tariffs."
Because of this, the Arizona Senator demanded Eli Lilly and Novo Nordisk provide a more complete picture of their agreement with the Administration, including what drugs are covered, how MFN prices are determined and updated, and whether the companies will commit to not shifting costs onto private insurance markets, employer plans, or Medicare to recoup any revenue loss.
"Given that many insured patients already have lower copays or coinsurance than the proposed TrumpRx discounts," Gallego continued, "it is unclear how this platform would provide meaningful relief. In fact, it may increase costs for patients. Given the significant implications for patients who rely on these medications, it is essential that the details of these agreements be made public."
In October, Gallego demanded similar transparency from pharmaceutical giant Pfizer, which struck a similar deal with the Trump Administration to sell products through TrumpRx at most-favored-nation prices, again paid for out of pocket by buyers.
