Lilly and Novo Rise on Report of Deal for Medicare Coverage

Shares of Eli Lilly & Co and Novo Nordisk A/S rose on a report that the companies were preparing to announce new deals with the White House to lower prices for weight-loss drugs in exchange for coverage under Medicare.

Lilly shares rose 1.5% at 10:36 a.m. in New York, while Novo’s US depositary receipts gained 1.3%, reversing earlier losses. The news was reported by trade publication Endpoints, which cited people familiar with the matter.

Under the deal the companies would offer the lowest dose of their weight-loss drugs for $149 per month, Endpoints reported, in exchange for coverage under ...