Big Win for Novo Nordisk: Biden's Weight-Loss Proposal Boosts Shares

Shares in Danish drug maker Novo Nordisk have increased following President Biden's proposal to expand Medicare and Medicaid coverage for anti-obesity drugs. This change, effective by 2026, could significantly reduce costs and enhance accessibility for millions of Americans, directly impacting the company's stock performance positively.

Shares of Danish weight-loss drug maker Novo Nordisk saw a 1.3% increase on Tuesday. This uptick came after U.S. President Joe Biden proposed expanding coverage for anti-obesity drugs under Medicare and Medicaid, affecting millions of Americans.

Currently, Medicare and Medicaid cover drugs like Mounjaro, Ozempic, and Wegovy for diabetes-related conditions, but not specifically for obesity. The proposed policy change could lower out-of-pocket expenses for weight-loss drugs by up to 95%, significantly broadening access.

Financial analysts noted that Novo's share movement coincided with similar trends in the market, as Eli Lilly, a U.S. competitor, also saw a rise in premarket trading following the proposal's announcement.

(With inputs from agencies.)