Eli Lilly and Novo Nordisk shares rose Tuesday after the Biden administration proposed expanding coverage of the companies' popular weight-loss drugs in government-backed healthcare plans including Medicare and Medicaid.

Medicare and Medicaid would cover weight-loss drugs like Wegovy and Ozempic under a new rule proposed by President Joe Biden on Tuesday, increasing access to the widely popular medications to millions of adults with obesity in the U.S., though the plan would likely face opposition under President-elect Donald Trump's second administration.

Shares of Danish weight-loss drug maker Novo Nordisk rose 1.3% on Tuesday as U.S. President Jo Biden proposed expanding coverage of anti-obesity drugs for millions on Medicare and Medicaid. "This is an important step forward for patients,