Eli Lilly says Trump pricing policy will delay obesity drug launches in Europe

Eli Lilly Says Trump Pricing Policy Will Affect European Drug Launches

Eli Lilly said on Tuesday that the Trump administration’s most-favored-nation pricing policy will affect its plans to launch its weight-loss pill in Europe and Britain, with the rollout now expected in the second half of 2026 or early 2027. The announcement came as the drugmaker said it would target the out-of-pocket telehealth market in Europe, mirroring its approach in the United States.tradingview

Pricing Pressure Reshapes Launch Plans

The most-favored-nation policy, which links the price paid for drugs in the U.S. to the lowest price in other high-income countries, has created a dilemma for pharmaceutical companies operating across multiple markets. Eli Lilly agreed earlier this month to offer reduced prices on several therapies including its GLP-1 medications as part of a deal with the Trump administration. The company had previously signaled it would “rebalance” drug prices globally, warning that for U.S. prices to come down, “the amounts paid by governments and health systems need to increase in other developed markets like Europe”.biopharmadive

Lilly’s weight-loss pill orforglipron, branded as Foundayo, received FDA approval earlier this year and has been available in the U.S. since April through the company’s LillyDirect platform at prices starting at $149 per month. The international launch had initially been expected by 2027, but the interplay between U.S. pricing commitments and European reimbursement negotiations appears to have complicated the timeline.reuters

EFPIA Warns Europe Risks Losing Investment

Separately on Tuesday, the head of Europe’s pharmaceutical industry lobby EFPIA warned that the continent must rethink how it values and pays for innovative medicines or risk losing manufacturing investments and clinical trials. The warning pointed to Germany as a key test case after the German government proposed new legislation in April aimed at curbing healthcare expenditures.insideeulifesciences

“Germany serves as a precursor for what Europe could experience, both positively and negatively,” the EFPIA leader said, adding that it is “improbable that you would conduct a clinical trial in a location where you do not plan to market”. The lobby group published research on Monday showing that patient access to new medicines is worsening across Europe and that each euro invested in new medicines produces €5.67 in economic and social returns.reuters

A Continent Under Pressure

The twin pressures of U.S. pricing demands and European cost-cutting measures have placed drugmakers in an increasingly difficult position. EFPIA has warned that Europe has lost nearly 25% of its share of global pharmaceutical R&D investment over the past two decades. The UK approved Novo Nordisk’s competing weight-loss pill earlier this month, becoming the first European market to do so, raising the stakes for Lilly’s delayed entry.reuters