Eli Lilly to cut price of insulin to $25, reduce other prices by 70%

INDIANAPOLIS, Indiana: Eli Lilly and Co has announced beginning in the fourth quarter of 2023, it will cut list prices by 70 percent for its most commonly prescribed insulin products, Humalog and Humulin.

The company will also lower the price of its Lispro insulin injection to $25 per vial and expand its insulin value program so that an existing $35 cap on some insulins will now apply in 85 percent of US pharmacies.

US President Joe Biden is working to ensure that a $35 cap on out-of-pocket insulin costs is available to recipients of the government’s Medicare health program, and many lawmakers have said that they would support the move with legislation.

In an interview with CNN, Eli Lilly Chief Executive Dave Ricks said, "While we could wait for Congress to act or the healthcare system, in general, to apply that standard, we’re just applying it ourselves."

The Indianapolis-based drugmaker, along with rivals Sanofi and Novo Nordisk, account for 90 percent of the US insulin market.

Sanofi has not commented on whether it would drop its prices to $25 following Lilly, but it said its patient assistance programs limit out-of-pockets expenses for most insured patients to $15 per month, while uninsured people could pay $35 per month.

Novo Nordisk said it also has affordability programs, including one with Walmart to make insulin available at about $25 per vial and another that offers diabetes patients with up to three vials for $99.

Meanwhile, Democrat Joe Biden called upon Congress and other manufacturers to follow Lilly and lower insulin prices.

According to analysts, the company was aiming to be proactive in response to lawmakers.

Brian Gardner, chief Washington policy strategist at Stifel investment firm, said, "It certainly appears they were reacting to the growing chances that Congress is going to cap insulin prices."

"These price cuts should be the new standard in America, and other companies and stakeholders should meet us at this point," Ricks said, as reported by Reuters.