In a very welcome move, Eli Lilly and Company (Lilly) has announced it is cutting the US prices of its most commonly prescribed insulins by 70%.
The prices of Humalog and Humulin will be cut by 70% from the fourth quarter of this year. The company will also be lowering the US price of its non-branded insulin, Lispro, to $25 a vial from the beginning of May, making it the lowest list-priced mealtime insulin currently available.
Lilly also said it will be automatically capping the out-of-pocket costs for its US insulin products at $35 a month for those with commercial insurance, and expanding its Insulin Value Program to ensure those without insurance can benefit from the cap as well.
Around 8.4 million of the 37 million people in the US with diabetes use insulin, according to the American Diabetes Association. However, despite it being relatively inexpensive to manufacture, the rising cost of insulin has been a pressing concern for many patients.
Lilly, which became the first company to commercialise human insulin 100 years ago, has come under fire in recent years over the pricing of its products. In January, California attorney general Rob Bonta filed a lawsuit against the company and other insulin manufacturers for allegedly using their market power to overcharge patients for the life-saving drug.
The lawsuit stated that, because Lilly, Novo Nordisk and Sanofi produce over 90% of the global insulin supply, they are able to keep ‘aggressively hiking’ the list price of insulin at the expense of patients. Other states including Minnesota, Mississippi, Arkansas and Kansas, as well as groups of drug purchasers, have previously brought legal action over insulin pricing.
David Ricks, Lilly’s chair and chief executive officer, said: “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.
“The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes.”
The American Diabetes Association issued a statement in response to Lilly’s cuts, with chief executive officer, Charles Henderson, saying: “We applaud Eli Lilly for taking the important step to limit cost-sharing for its insulin, and we encourage other insulin manufacturers to do the same.
“We will work to ensure that Eli Lilly’s patient assistance programme is benefiting patients as intended and continue the fight so that everyone who needs insulin has access.”