Eli Lilly Slashes Insulin Prices By 70%, Will Other Insulin Makers Follow Suit?

Eli Lilly & Co LLY, in an effort to make it easier for patients to access affordable insulin and navigate the complex healthcare system, announced on Wednesday a 70% reduction in the list price of its most commonly prescribed insulin products.

The company also announced an expansion of its Insulin Value Program that caps patient out-of-pocket costs at $35 or less per month.

The price reductions will come into effect at different times for different products. The non-branded Insulin Lispro Injection 100 units/mL will be reduced to $25 per vial, effective immediately. This makes it the lowest-priced mealtime insulin available, costing less than a Humalog vial did in 1999.

Humalog and Humulin will be reduced by 70%, effective in the fourth quarter of this year. Meanwhile, the new product Rezvoglar, a biosimilar and interchangeable version of Lantus, will be available for $92 per five pack of KwikPens, a 78% discount to Lantus, effective from April 1, 2023.

The move by Lilly comes after years of efforts to make affordable insulin more accessible for those who need it. In recent years, the company has introduced multiple insulin affordability solutions, including launching low-priced, non-branded insulins in 2019 and implementing the Lilly Insulin Value Program in 2020.

The announcement by Lilly is significant in the insulin market, as it could put pressure on other insulin makers including Novo Nordisk A/S NVO and Sanofi SA SNY to reduce their prices as well.

Also Read: Eli Lilly's Says Inventory For Diabetes Mounjaro Is Available, Probably Ending Shortage

It should be noted that Novo Nordisk has 52% of global market share by volume, followed by Eli Lilly with 23%, with Sanofi controlling 17% global market share by volume. 

Insulin prices have been a point of contention for many patients with diabetes in the U.S., with some struggling to afford the medication they need to manage their condition. The price reduction could signal a shift in the industry towards more affordable insulin, which could benefit patients across the country.

Lilly will also launch a nationwide public awareness campaign in the coming weeks to help ensure all Lilly insulin users understand how to access the company's affordability solutions.

Price action: Shares of Eli Lilly & Co are trading 0.1% higher on Wednesday morning to $311.48, according to data from Benzinga Pro.

Also Read: FDA Gives Conditional Approval For Eli Lilly's Drug For Rare Blood Cancer

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