Novo Nordisk Stock Surges as Biden Advocates Medicare Coverage for Weight-Loss Drugs

Shares of Novo Nordisk jumped 1.3% after President Biden proposed expanding Medicare and Medicaid coverage for weight-loss drugs. Currently covering certain conditions, the changes could become effective in 2026, potentially reducing out-of-pocket costs by 95%. The news also influenced Eli Lilly's market performance.

In a significant development for the pharmaceutical industry, shares of Novo Nordisk experienced a 1.3% rise on Tuesday. This uptick followed U.S. President Joe Biden's proposal to expand Medicare and Medicaid coverage for weight-loss drugs.

Currently, these programs cover medications like Mounjaro, Ozempic, and Wegovy for conditions such as diabetes but not specifically for obesity. Novo Nordisk described the proposal as "an important step forward for patients," noting that if approved, the coverage might take effect in 2026.

According to the White House, this initiative could decrease out-of-pocket expenses for weight-loss medications by 95%, widening access significantly. Nordnet analyst Per Hansen remarked on Novo Nordisk's share increase, which coincided with a similar rise in U.S. pharmaceutical company Eli Lilly's premarket trading.

(With inputs from agencies.)