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