The price war has begun! Novo Nordisk (NVO.US) will significantly lower the price of weight loss drugs in the US starting next year, targeting Eli Lilly (LLY.US) to regain market share.

CITIC Finance APP has learned that Novo Nordisk (NVO.US) plans to significantly reduce the official U.S. prices of two of its flagship drugs, Wegovy and Ozempic, next year to gain a larger share in the obesity treatment market.

This Danish pharmaceutical company will set a uniform monthly price of $675 for its entire semaglutide product line, a reduction of up to 50%. Its U.S. competitor Eli Lilly (LLY.US) currently prices similar weight-loss drugs like Zepbound at $1,086.37 per month.

The price cut targets wholesale procurement costs; this publicly listed price does not reflect the complex rebate system in the U.S. market. On the commercial insurance level, patients using Zepbound and Wegovy pay as little as $25 per month out-of-pocket.

Novo Nordisk’s U.S. head Jamey Millar stated that the price reduction does not apply to existing out-of-pocket prices but can ease some insurance patients’ financial burden—especially those who bear a higher proportion of drug costs.

“I believe payers will accept and welcome this price cut; they have previously called publicly for lower drug prices,” Millar said. This move alone will not impact the company’s net sales.

Currently, Novo Nordisk is taking multiple measures on pricing to enhance its competitiveness in the obesity field. Millar, who previously worked at UnitedHealth’s pharmacy benefits manager OptumRx, is an expert in U.S. pricing strategies.

The new prices will take effect on January 1 next year. Millar said the company needs to announce the price reduction now to give payers time to prepare for the changes next year.

He pointed out that this adjustment will particularly impact high-deductible insurance groups—whose out-of-pocket costs are closely tied to official prices—and co-insurance patients who pay a percentage of drug costs.

According to the KFF employer health benefits survey, about one-third of insured workers last year chose high-deductible health plans paired with personal health savings accounts; the survey also showed that fewer than half of large companies provide insurance reimbursement for GLP-1 weight-loss drugs like Wegovy.

This official price reduction will be implemented alongside the discounts negotiated last year by the U.S. federal government for Medicare patients (the federal insurance program for seniors). Millar emphasized that the two price cuts are independent and unrelated.