Eli Lilly plans to reduce prices by 70% or more for some older insulins later this year, as announced on Wednesday.
According to the American Diabetes Association, more than 37.3 million Americans have diabetes, and nearly 1.9 million have type 1 diabetes as of 2019. It should be noted that people with Type 1 diabetes have to take insulin every day. However, research shows that insulin prices have tripled in the last two decades.
In this regard, President Joe Biden asked the drug makers to reduce the insulin price cap to $35, which he mentioned during his annual State of the Union address.
Biden confirmed through a statement on Wednesday that Eli Lilly responded to his call.
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Eli Lilly and Co. was the first company to commercialize insulin in 1923 after the University of Toronto scientists discovered it. The drugmaker later built its reputation on producing insulin, cancer treatments, antipsychotics, and other drugs.
Lilly announced they would reduce the prices for Humulin and Humalog – the most commonly prescribed insulin – by 70% or more starting in October. A Lilly spokeswoman revealed a 10-milliliter vial of insulin Humalog is $274.40 and is expected to fall to $66.40 by October. At the same time, Humulin, currently priced at $148.70, will decrease to $44.61. The company is also planning to reduce the price of the authorized generic version of Humalog to $25 starting in May.
Eli Lilly plans to reduce the insulin price cap of Humalog and Humulin by 70%, which means the $274.40 current price for Humalog is expected to fall to $66.40, and Humulin from $148.70 to $44.61. (Photo: Financial Times)
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AP News reports, patient advocates like Public Citizen said Lilly’s price cut was already overdue as they have long called for insulin price cuts for many years. They noted that high insulin prices force many people to ration their doses, which can harm their health.
However, Stacie Dusetzina, a health policy professor at Vanderbilt University, said the planned cuts could only provide some substantial price relief and won’t affect Lilly much financially. Lilly has raked over $3 billion in revenue for Humulin and Humalog and its authorized generic version. She further noted that the planned cuts are for older insulins already facing competition.
Larry Levitt, an executive vice president with Kaiser, also added that drugmakers currently see “the writing on the wall that high prices can’t persist forever.” He claimed Lilly was trying to get ahead and look good to the public.
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