As of the fourth quarter of this year, Eli Lilly and Co (LLY.N) will reduce list prices by 70% for Humalog and Humulin, its most commonly prescribed forms of insulin.
U.S. lawmakers have been criticizing healthcare companies over rising insulin costs, with President Joe Biden’s signature Inflation Reduction Act capping insulin costs for Medicare beneficiaries at $35.
In an interview with CNN, Chief Executive Dave Ricks said, “While we could wait for Congress to act or for the healthcare system in general to apply that standard, we’re doing it ourselves.”
The company will also lower the price of its non-branded insulin injection Lispro to $25 a vial and expand its Insulin Value Program, which will cap insulin prices at $35 in 85% of U.S. pharmacies.
Patients using pharmacies not participating in the program can get a rebate through the drug maker’s website.
This should be the new standard in America, and Rick urged other companies and stakeholders to join forces. “Insulin has become a pivotal issue due to its affordability,” he said.
The American Diabetes Association reports that around 8.4 million Americans with diabetes use insulin. Eli Lilly, along with Sanofi (SASY.PA) and Novo Nordisk (NOVOb.CO), account for 90% of the U.S. insulin market.
Until recently, insulin was priced more than $275 a vial, representing a 1,200% increase in price over the past 20 years.