Biden’s proposal lifts Novo Nordisk stock

The popularity of Novo Nordisk’s weight loss drug Wegovy in the USA has driven Novo’s stock price up by 1.3% after a proposal by President Joe Biden suggested that public health insurances, Medicare and Medicaid, should cover weight loss medications for overweight individuals without diabetes or cardiovascular diseases. This could extend coverage for Wegovy to an additional 7.4 million Americans, potentially reducing their medication costs by up to 95%, pending Congressional support. The proposal would also benefit competitors like Eli Lilly, as it includes all weight loss medications. Currently, Medicare serves mainly those over 65, while Medicaid already covers Novo Nordisk’s diabetes drug Ozempic, which contains the same active ingredient as Wegovy, semaglutide. Without insurance, Wegovy’s list price is $1,349 monthly.