Novo Nordisk Shares Surge as Biden Proposes Expanded Drug Coverage

Shares of Novo Nordisk gained 1.3% following U.S. President Biden's proposal to expand Medicare and Medicaid coverage for anti-obesity drugs. The change could take effect in 2026, potentially lowering costs for millions of Americans. The market reacted with Novo's and Eli Lilly's stocks rising, while Amgen's dipped.

Shares of Danish pharmaceutical giant Novo Nordisk experienced a 1.3% increase on Tuesday. This rise followed a proposal from U.S. President Joe Biden aiming to extend coverage for anti-obesity drugs under Medicare and Medicaid.

Novo Nordisk responded positively to the proposal, stating that it represents a significant advancement for patient care. The expanded coverage might be implemented by 2026 and could substantially reduce out-of-pocket expenses for American patients.

Market reactions saw U.S. counterparts like Eli Lilly rise in premarket trading, while Amgen's shares fell by nearly 8%, amid disappointing trial data for its obesity treatment contender, MariTide.

(With inputs from agencies.)