The agreement will also secure a $150 price for future weight loss pills from Novo Nordisk and Eli Lilly—at least initially.

The White House is expected to announce a deal for lower prices of obesity drugs from Novo Nordisk and Eli Lilly on Thursday during an event, according to sources familiar with the situation, pushing shares of the two companies higher as investors bet on increased patient access in government health programs.

President Donald Trump’s administration confirmed Thursday that it has reached a deal with Eli Lilly and Novo Nordisk that aims to deliver lower prices for their popular GLP-1 drugs to certain Medicare and Medicaid beneficiaries and to users of TrumpRx.

Eli Lilly and Novo Nordisk have become the latest pharma giants to strike price-reduction deals with the White House, agreeing to sell their weight loss drugs at cut-rate prices to patients in the U.S.

Eli Lilly and Novo Nordisk are cutting prices for popular weight-loss drugs in deals struck with the Trump administration, which is expanding coverage of the drugs in the Medicare and Medicaid health-insurance programs.

Eli Lilly and Novo Nordisk are expected to announce deals with the Trump administration to cut prices of their weight-loss drugs in exchange for Medicare coverage, a White House source told Reuters on Tuesday.

The White House announced today that it reached agreements with Eli Lilly and Novo Nordisk to align their drug prices with the lowest paid by other developed nations, known as the most-favored-nation price.