SELF-RATIONING INSULIN
The cost of a five-pack of Humalog is currently US$530.40, although the out-of-pocket price to a user varies depending on one’s insurance plan. Average monthly use varies by user, Eli Lilly says on its website.
Drug pricing in the United States is affected not only by the cost of producing and distributing the pharmaceutical, but also by other players such as insurers and pharmacy benefit management companies.
Critics such as progressive Senator Bernie Sanders have blasted the industry as emblematic of “unacceptable corporate greed”.
“At a time when Eli Lilly made over US$7 billion in profits last year, public pressure forced them to reduce the price of insulin by 70 per cent,” Sanders said on Twitter after the price-cut announcement.
“Sanofi and Novo Nordisk must do the same,” he added, referring to two other companies which along with Lilly dominate the insulin market.
Both Sanofi and Novo Nordisk released statements to AFP pointing to programs to help make insulin more affordable, including to uninsured users. But neither company commented directly on whether they would match the Lilly plan.
A survey by nonprofit T1International showed that one in four respondents living with diabetes reported rationing their insulin because of the financial strain.
The Inflation Reduction Act, signed into law last year by Biden, capped insulin prices for Medicare recipients at US$35 per month, but people with private insurance and the uninsured were left out.
Biden, in his State of the Union Address, called on lawmakers to rein in Big Pharma and “finish the job this time” by instituting a national cap on insulin costs.
In the company’s statement, Eli Lilly Chief Executive David Ricks urged rival producers to join the effort.
“We know 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,” said Ricks.
The company’s statement referred uninsured consumers to an insulin affordability website, saying they could “receive Lilly insulins for US$35 per month”.
Lilly shares closed up about one per cent at US$314.17.
Because most of the price cut will affect rebates from Lilly to insurers rather than revenues to the drugmaker itself, Wednesday’s announcement will leave “Lilly less affected than the price cuts would suggest”, said Morningstar analyst Damien Conover in a note.
The cut should not “significantly disrupt” Lilly sales, while insurers “will need to take the hit” from Washington’s fixation on runaway prices, he added.
“Addressing the pricing concerns around insulin should help Lilly maintain pricing power with new innovative drugs,” said Conover.
Source: CNA
