COPENHAGEN (Reuters) – Shares in Danish weight-loss drug maker Novo Nordisk (NYSE 🙂 rose 1.3% on Tuesday after U.S. President Jo Biden proposed expanding coverage of anti-obesity drugs for millions of Medicare and Medicaid beneficiaries.
“This is an important step forward for patients,” Novo Nordisk said in a statement commenting on the proposal, adding that coverage could come into effect in 2026.
Current rules for the government health insurance programs Medicare and Medicaid cover the use of drugs such as Mounjaro, Ozempic and Wegovy for certain conditions such as diabetes, but not for obesity as a condition itself.
The White House said in a statement that the proposal could reduce out-of-pocket costs for weight-loss drugs by up to 95%, expanding access to millions of Americans.
Nordnet analyst Per Hansen said the move in Novo shares came on the back of the proposal, and its U.S. peer Eli Lilly (NYSE 🙂 also rose in premarket trading.