Novo Nordisk to slash US insulin prices, following move by Eli Lilly, Health News, ET HealthWorld
Reuters
March 15, 2023, 15:02 IST
Novo Nordisk said on Tuesday it would cut US list prices for several insulin products by up to 75 per cent next year, joining rival Eli Lilly and Co as political pressure mounts to make these life-sustaining diabetes treatments more affordable.
The moves follow the passing of President
Joe Biden
's Inflation Reduction Act last year that capped insulin prices for Medicare recipients at $35 per month, but does not include patients without insurance. Around 8.4 million of the 37 million people in the United States with diabetes use insulin, according to the American Diabetes Association.
Although insulin list prices are high in the US, drugmakers typically pay substantial rebates to private insurers and government programs, resulting in lower prices for most Americans with insurance.
Uninsured people sometimes have to pay the full list prices, forcing some to ration or skip taking their medicine. Biden said in a statement that he was pleased by Novo's move and urged other manufacturers to follow suit.
The Danish drugmaker will reduce the list price of its NovoLog insulin by 75 per cent, and for Novolin and Levemir by 65 per cent. The company said the financial impact of the move was uncertain.
US-listed Novo Nordisk shares rose as much as 1.7 per cent to $142.95, while Denmark-listed shares closed marginally higher on Tuesday. Eli Lilly shares were down slightly.
Novo Nordisk, which had a 43 per cent share of the US and Canada insulin market as of November, also said it would reduce the list price of unbranded insulin products to match lowered prices of respective branded insulin products. Eli Lilly said earlier this month it would cut the list prices for its most commonly prescribed insulin products by 70 per cent in the fourth quarter of this year.
"I think it is a relatively natural consequence of what we have seen their competitor Eli Lilly do. We know there has been political pressure on this issue in general, it is a focus area in the U.S., especially for uninsured patients," Jyske Markets analyst Henrik Hallengreen Laustsen said.
Sanofi did not specifically comment on Novo Nordisk's announcement but said it would continue to review and update its programs. Eli Lilly, Sanofi and Novo Nordisk make up 90 per cent of the of the US market for insulin.
Wednesday, March 15, 2023 at 9:32 am