Key Takeaways Eli Lilly and Novo Nordisk shares rose Tuesday after the Biden administration proposed expanding coverage of the companies' weight-loss drugs in government-backed healthcare plans.The proposal recommended drugs like Ozempic and Mounjaro be covered under Medicare and Medicaid,

Shares of Eli Lilly & Co. ($LLY) and Novo Nordisk A/S ($NVO) climbed in Tuesday’s premarket trading after the Biden administration announced a proposal to provide Medicare and Medicaid coverage for obesity drugs.

Investors were excited as U.S. President Joe Biden proposed expanding coverage of anti-obesity drugs for millions on Medicare and Medicaid. Novo called the move an important step forward for patients.