The Trump administration is set to launch a pilot program to allow Medicare and Medicaid to cover weight-loss drugs, including GLP-1 medications such as Ozempic, Wegovy, Mounjaro, and Zepbound. The experimental coverage is expected to begin for Medicaid in April 2026 and for Medicare in January 2027, potentially impacting over 135 million enrollees. This policy shift could significantly boost the weight-loss drug market, currently valued at over $150 billion, benefiting pharmaceutical companies like Eli Lilly and Novo Nordisk. Following the announcement, shares of Eli Lilly and Novo Nordisk rose by 3% and 2% respectively. However, Novo Nordisk has faced challenges recently, including a 70% stock decline from its peak over the past year due to increased competition, patent expirations, and tariff threats. Indian pharmaceutical companies such as Dr. Reddy's Laboratories, Cipla, Sun Pharma, and Mankind are preparing to launch generic versions of semaglutide, which may lead to sharp price reductions in India's ₹628 crore anti-obesity market. Barclays has cautioned that price erosion in the GLP-1 drug class could accelerate more than anticipated. Additionally, the Trump administration is investing $200 billion into Medicaid to support the program. Novo Nordisk recently received an unsolicited mini-tender offer from TRC Capital to purchase up to two million shares, to which the company has remained neutral. The healthcare sector has experienced pressure this year amid fierce competition in the obesity drug market, though advancements in AI may facilitate the development of new medicines.