US drugmaker Eli Lilly makes insulin more affordable, slashes prices
United States-based drugmaker Eli Lilly slashed the costs of insulin as the country faces a problem that has become a cause célèbre.
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Photo shows a vial of Eli Lilly's Humalog insulin in New York, US (AP).
As drug prices soar in the US, pharmaceutical company Eli Lilly and Company, based in Indianapolis, Indiana, announced, on Wednesday, that it would slash insulin costs by about 70%.
US President Joe Biden called on other pharmaceutical companies to follow in Lilly's footsteps and cut the costs of insulin following years of large-scale profits.
In a statement, Biden said "Insulin costs less than $10 to make, but Americans are sometimes forced to pay over $300 for it. It's flat wrong," adding that Lilly's announcement is "huge news" as he urged others to follow.
Lilly announced a variety of price-cutting measures, which included the capping of out-of-pocket expenditures for customers with insurance at $35 per month.
In a statement, the company said "Lilly is taking these actions to make it easier to access Lilly insulin and help Americans who may have difficulty navigating a complex healthcare system."
It is worth noting that although the $35 cap goes into effect immediately, the remaining measures will be phased in over the course of 2023.
The price reduction of Humalog, Lilly's most widely prescribed insulin, is a game-changer.
According to the US Centers for Disease Control and Prevention, the prevalence of diabetes in adults has more than quadrupled in the previous 20 years, affecting 37.3 million individuals.
We capped the cost of insulin for seniors on Medicare at $35.
— President Biden (@POTUS) March 1, 2023
But in my State of the Union, I said we needed to finish the job.
Well, today, Eli Lilly announced that they’re lowering prices for everyone else to $35.
Let’s keep it going. pic.twitter.com/XXBXe4HnR4
Moreover, according to a 2020 Rand Corporation report, insulin prices in the US are more than eight times higher than in 32 similar high-income nations.
Until now, much of the benefit from exorbitant drug prices goes to insurers in the form of rebates rather than to pharmaceutical companies. As a result, the financial impact of Lilly's move may fall largely on insurers.
Insulin's high cost, particularly for uninsured individuals, has become a cause célèbre for pharmaceutical industry critics.
Senator Bernie Sanders criticized the pharma industry as emblematic of "unacceptable corporate greed."
In a Twitter post, Sanders said, "At a time when Eli Lilly made over $7 billion in profits last year, public pressure forced them to reduce the price of insulin by 70%," adding that "Sanofi and Novo Nordisk must do the same."
This is what fighting back accomplishes: At a time when Eli Lilly made over $7 billion in profits last year, public pressure forced them to reduce the price of insulin by 70%. Sanofi and Novo Nordisk must do the same. https://t.co/0UtawajURk
— Bernie Sanders (@SenSanders) March 1, 2023
On this note, both Sanofi and Novo Nordisk issued statements to AFP referring to efforts designed to make insulin more accessible, particularly for uninsured patients.
Eli Lilly Chief Executive David Ricks, in a statement, encouraged drugmakers across the US to join efforts in making insulin more accessible to everybody.
Ricks noted, "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."
