Lilly Slashes Insulin Prices by 70%. Will Novo Nordisk, Sanofi Follow?

Lilly's announcement puts pressure to follow suit on competitors Novo Nordisk and Sanofi.

Indianapolis-based Eli Lilly and Co., the nation's largest insulin manufacturer, says it will slash the cost of the drug by 70% and cap patient out-of-pocket costs at $35 or less per month.

“While the current healthcare system provides access to insulin for most people with diabetes, it still does not provide affordable insulin for everyone and that needs to change," Lilly Chair and CEO David A. Ricks says in a media release Wednesday.

"The aggressive price cuts we're announcing today should make a real difference for Americans with diabetes,” Ricks says. “Because these price cuts will take time for the insurance and pharmacy system to implement, we are taking the additional step to immediately cap out-of-pocket costs for patients who use Lilly insulin and are not covered by the recent Medicare Part D cap."

Specifically, Lilly says it will:

• Cut the list price of its non-branded insulin, Insulin Lispro Injection 100 units/mL, to $25 a vial. Effective May 1, 2023, it will be the lowest list-priced mealtime insulin available, and less than the price of a Humalog vial in 1999.
   
• Cut the list price of Humalog (insulin lispro injection) 100 units/mL1, Lilly's most commonly prescribed insulin, and Humulin (insulin human) injection 100 units/mL² by 70%, effective in Q4 2023.
   
• Launch Rezvoglar, a basal insulin biosimilar of injected Lantus for $92 per five pack of KwikPens, a 78% discount to Lantus, effective April 1, 2023.
   
• Automatically cap out-of-pocket costs at $35 at participating retail pharmacies for people with commercial insurance using Lilly insulin, effective immediately^.
   

• Provide access to $35 insulin for uninsured diabetics using its online website InsulinAffordability.com, effective immediately.
  
  A Department of Health and Human Services report issued last month found that 1.5 million Medicare enrollees will benefit from a $35 cap on a month’s supply of insulin, which was mandated under the Inflation Reduction Act.
  
  The report also found that nationally, the average out-of-pocket cost was $58 per insulin fill in 2019, typically for a 30-day supply. On the commercial side, the report found that patients with private insurance or Medicare paid about $63 per fill on average, and 1 in 5 Americans taking insulin paid more than $70 per prescription.

  Pressure on Rivals

  Lilly's announcement puts pressure to follow suit on competitors Novo Nordisk and Sanofi, who with Lilly manufacture more than 90% of the global insulin supply. Neither company would commit to copying Lilly's price cuts, but both also say they already have extensive policies in place for purchasing insulin at rates similar to what Lilly is charging.

  In a Tweet Wednesday, President Joe Biden calls Lilly's announcement "a big deal" and added "it's time for other manufacturers to follow."

  "For far too long, American families have been crushed by drug costs many times higher than what people in other countries are charged for the same prescriptions. Insulin costs less than $10 to make, but Americans are sometimes forced to pay over $300 for it. It's flat wrong," Biden says. "Last year, I signed a law to cap insulin at $35 for seniors and I called on pharma companies to bring prices down for everyone on their own. Today, Eli Lilly did that."

  Likewise, Health and Human Services Secretary Xavier Becerra praised Lilly's "historic drop in their price for insulin."

  "Now it’s time for other drug manufacturers to join in. And it's time for Congress to build on, not repeal, our new prescription drug law, the Inflation Reduction Act," Becerra says.

  While not mentioning his competitors, Ricks implied that Novo Norisk and Sanofi should follow Lilly's lead, noting that “7 out of 10 Americans don't use Lilly insulin."

  "We are calling on policymakers, employers and others to join us in making insulin more affordable," Ricks says.

  Denmark-based Novo Nordisk issued a statement affirming its "ongoing commitment to patient affordability and access over the past several years."

  "For more than 10 years, we have had an offering through Walmart which includes a human insulin program for about $25 per vial," the drugmaker says. "In addition, through NovoCare, our My$99Insulin program provides eligible people living with diabetes a 30-day supply of a combination of our insulin products (up to three vials or two packs of pens) for $99, equating to $33/vial or $49.50/pack of pens. Our Immediate Supply program provides those who may be at risk of rationing their insulin a one-time free 30-day supply of our insulin."

  Sanofi issued a statement saying it "believes that no one should struggle to pay for their insulin, regardless of their insurance status or income level, which is why we have a suite of innovative and patient-centric savings programs to help people reduce their prescription medicine costs."

  The Paris-based company says that 100% of commercially insured people are eligible for Sanofi's copay assistance programs, regardless of income or insurance plan design, which caps out-of-pocket expenses for most patients to $15 or less for one month.

  In addition, Sanofi says all uninsured people are eligible for a $35-a-month price through its Insulins Valyou Savings Program, and also allows uninsured people to pay as little as $99 for a 30-day supply of pens.

  "We also provide free medications to qualified low- and middle-income patients through the patient assistance component of the Sanofi Patient Connection, and last year, Sanofi also launched Insulin Glargine U-100 at a price that is 60% less than the current Lantus list price, while continuing to offer Lantus to payers who choose to cover the existing product," the drugmaker says.

  Hot Button Issue

  The high cost of healthcare, and specifically the skyrocketing costs of prescription drugs, have been a hot topic in state and federal government circles, and in Congress, where Republicans and Democrats have says it's time to address the issue.

  On Jan. 12, California Attorney General Rob Bonta filed suit against Lilly, Sanofi and Novo Nordisk, and pharmacy benefits mangers CVS Caremark, Express Scripts, and OptumRx “for driving up the cost of the lifesaving drug through unlawful, unfair, and deceptive business practices in violation of California's Unfair Competition Law.”

  "Insulin is a necessary drug that millions of Americans rely upon for their health, not a luxury good," Bonta says. "With (this) lawsuit, we're fighting back against drug companies and PBMs that unacceptably and artificially inflate the cost of life-saving medication at the expense of vulnerable patients."

  Biden used his State of the Union address last month to scold "Big Pharma" for reaping "record profits" from insulin sales, and urged Congress to support a universal $35-a-month cap on the price of the life-sustaining diabetes drug.

  Biden told Congress that the $35-a-month insulin price cap for Medicare enrollees under the IRA should be available to everyone regardless of their coverage status.

  "Insulin has been around for 100 years,” Biden told a joint session of Congress. "The guy who invented it didn't even patent it because he wanted everyone to have it. It costs drug companies just $10 a vial to make. But, Big Pharma has been unfairly charging people hundreds of dollars – and making record profits."

  Sen. Bernie Sanders (I-VT), chair of the Senate Health, Education, Labor and Pensions (HELP) Committee and an outspoken and ardent critic of pharma, credited the cost cuts to public pressure more than corporate benevolence on Lilly's part.

  "This is what fighting back accomplishes: At a time when Eli Lilly made over $7 billion in profits last year, public pressure forced them to reduce the price of insulin by 70%," Sanders Tweeted. "Sanofi and Novo Nordisk must do the same."