The U.S. government, under the Trump administration, plans to initiate experimental programs to cover weight-loss drugs under Medicare and Medicaid. The pilot program is expected to begin in April 2026 for Medicaid and January 2027 for Medicare. This initiative will include coverage for GLP-1 receptor agonist drugs such as Novo Nordisk's Ozempic and Wegovy, and Eli Lilly's Mounjaro and Zepbound. The move represents a policy shift that could impact over 135 million Medicare and Medicaid enrollees and potentially boost the market for these drugs, currently valued at over $150 billion. Following the announcement, shares of Eli Lilly and Novo Nordisk rose, with Eli Lilly's stock increasing about 3% to $759.41 and Novo Nordisk's rising approximately 2% to $48.08. Meanwhile, Novo Nordisk faces investor lawsuits in the U.S. alleging that the company misled shareholders by providing overly optimistic growth forecasts and downplaying competition risks in the obesity drug market. Additionally, competition is intensifying as Indian pharmaceutical companies prepare to launch generic versions of semaglutide, a key ingredient in Novo Nordisk's products, following patent expiry. Online weight-loss company Noom has introduced a low-dose version of Novo Nordisk's Wegovy at an introductory price of $119, aiming to offer a more affordable option for patients. The broader healthcare sector has experienced challenges amid fierce competition in the obesity drug market, with analysts cautioning that price erosion for GLP-1 drugs could accelerate. Novo Nordisk also recently received an unsolicited mini-tender offer from TRC Capital to purchase up to two million shares, to which the company has remained neutral without expressing an opinion.