Topline
Pharmaceutical heavyweight Novo Nordisk on Tuesday announced it is cutting prices for several insulin drugs in the U.S., following a similar move from drugmaker Eli Lilly as healthcare companies come under increasing pressure to lower prices for the lifesaving diabetes medication.
Novo Nordisk announced plans to cut the prices of its insulin products.
Key Facts
Novo Nordisk said it will lower list prices for several insulin products—which includes vials, pre-mix insulins and pre-filled pens—by up to 75% starting January 2024.
The company said it will cut the list price of its NovoLog insulin by 75% and prices for its Novolin and Levemir products by 65%.
Novo Nordisk also said it will reduce list prices for unbranded insulin products to match the lowered price of the respective branded product.
Steve Albers, a senior vice president at Novo Nordisk, said the company is “working to develop a sustainable path forward that balances patient affordability, market dynamics, and evolving policy changes” and takes its responsibility to ensure patients can afford its products “seriously.”
A Novo Nordisk spokesperson told Forbes the company had been working on the change for months but “accelerated” its plans and announced them now due to increased stakeholder interest in the issue.
The Wall Street Journal, which first reported the story, said the cuts are likely to have the biggest impact on people without health insurance or who have plans with high deductibles, noting that those with fixed monthly copays may not notice a corresponding drop in costs.
News Peg
Novo Nordisk’s announcement comes weeks after a U.S. drugmaker Eli Lilly said it was cutting the price of its most commonly prescribed insulin product by 70%. It follows years of sustained pressure from lawmakers and activists for companies to cut insulin prices, as well as lawsuits alleging companies have abused their dominant market position to overcharge patients. The Inflation Reduction Act passed in August introduced $35-a-month caps for out-of-pocket costs for insulin, though this excludes tens of millions of people who are not covered by the scheme.
Key Background
Insulin, a hormone usually made in the pancreas, is an essential medication for treating diabetes. More than 10% of the U.S. population have diabetes, the CDC estimates, some 37 million people. Insulin prices have skyrocketed in the U.S. in recent years and the prohibitive costs mean many are having trouble paying for the product and are going without or rationing it to make it last longer, which risks serious health problems. The global market is dominated by Eli Lilly, Novo Nordisk and French pharma giant Sanofi, who reportedly make up 90% of the U.S. market.
Further Reading
Eli Lilly Slashes Insulin Prices Up To 70% And Caps Out-Of-Pocket Costs At $35 (Forbes)
Novo Nordisk to Slash Insulin Prices by Up to 75% (WSJ)
Source: https://www.forbes.com/sites/roberthart/2023/03/14/novo-nordisk-will-lower-insulin-prices-up-to-75-following-eli-lilly/