Trump's Stock Picks Perfectly Timed With New Medicare Rules: Report

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President Donald Trump disclosed stock purchases worth as much as $680,000 in Eli Lilly & Co. (LLY) earlier this year, with the trades occurring as federal agencies under his administration advanced policies that benefited the drugmaker's obesity drug business.

Trump's Eli Lilly Purchases Coincided With GLP-1 Policy Developments

Citing disclosure forms signed by Trump, KFF Health News reported seven purchases of Eli Lilly shares through the end of March. The first transaction occurred on January 6, according to the filings.

The company, valued at nearly $1 trillion by the market, has become a major player in the growing GLP-1 weight-loss drug market.

The timing of the investments aligned with several administration initiatives tied to Medicare coverage of obesity treatments.

Among the most notable developments was a proposal from the Centers for Medicare & Medicaid Services for a pilot program that would allow Medicare patients to access GLP-1 drugs for about $50 per month.

The proposed initiative was viewed as a temporary bridge program that could later lead to permanent Medicare reimbursement for weight-loss treatments. Drugmakers were required to submit applications for participation by January 8.

Eli Lilly was later named as one of the participating manufacturers in the program. The company described the inclusion as a "significant milestone" for its obesity treatment business.

West Pharmaceutical Investment Also Tied To GLP-1 Market

Trump's disclosures also revealed a February 10 purchase of shares in West Pharmaceutical Services (WST), valued between $250,000 and $500,000.

West Pharmaceutical manufactures injectable delivery systems used in drug treatments and recently cited growth in its GLP-1 segment as a contributor to higher quarterly revenue.

Trump Organization Says Investments Are Independently Managed

A spokesperson for the Trump Organization told Reuters that Trump's investment holdings are maintained through discretionary accounts managed independently by third-party financial institutions.

According to the statement, trading decisions and portfolio balancing are handled through automated systems controlled by those firms.

According to Reuters, the president's assets are held in a trust controlled by his children.

LLY Price Action: Eli Lilly shares were up 2.73% at $1015.09 at the time of publication on Tuesday, according to market data. Over the past month, LLY has gained about 9.4% versus a 3.9% rise in the S&P 500 and is down roughly 6% year-to-date compared to the index's 7.4% gain.