Eli Lilly vows insulin prices won’t rise; Novo Nordisk, Sanofi hedge

Eli Lilly CEO Dave Ricks on Wednesday promised not to boost prices on the corporate’s existing insulin products again — the one executive to achieve this before a Senate Health Committee hearing on making the life-saving diabetes drug cheaper.

Sen. Bernie Sanders, the committee’s chair, asked Ricks and the CEOs of Novo Nordisk and Sanofi to commit to “never increase the value of any insulin drug again.” The three firms control over 90% of the worldwide insulin market. 

Ricks was the one executive who outright agreed to Sanders’ demand – not less than for Eli Lilly’s existing insulin products.  

“We’ll leave our prices as they’re for the insulins in the marketplace today,” Ricks told the Vermont senator. “Actually, we have been cutting them.”

Meanwhile, Novo Nordisk CEO Lars Fruergaard Jørgensen said the Danish company is committed to limiting price increases to “single digits.” 

Sanofi CEO Paul Hudson responded that the corporate has a “responsible pricing policy.” 

He also noted that net prices for Sanofi’s insulin products are literally falling. Net price refers back to the amount insurers pay for an insulin drug after discounts and rebates. It is usually lower than the value a product is listed for.

All three firms have faced years of political pressure to make insulin cheaper for individuals with diabetes. 

In March, they each announced that they’ll slash the costs of their most generally used insulin products. 

Lilly said it could price its Lispro injection at $25 a vial, effective May 1, and slash the value of its Humalog and Humulin injections by 70% starting within the fourth quarter.

The corporate also said it could cap out-of-pocket costs for individuals with private insurance at $35 monthly at participating retail pharmacies.

Novo Nordisk said it could cut the list price of its NovoLog insulin by 75% and lower the costs for Levemir and Novolin by 65% starting next yr.

Sanofi said it plans to chop the value of its hottest insulin drug, Lantus, by 78% and reduce the list price of its short-acting insulin, Apidra, by 70%. 

On the hearing, Sanders called those actions “excellent news” and a results of public pressure. 

However the senator said the committee intends to carry a hearing next yr to make sure those price cuts are “in reality happening.” 

“We just don’t need words. We would like actions,” Sanders said in his opening remarks.

“We must ensure price reductions go into effect in a way that each American with diabetes gets insulin they need at an inexpensive price,” Sanders added. 

The hearing also gathered other major players within the insulin industry: top executives from three of the most important pharmacy profit managers. 

Those executives were David Joyner, president of CVS Health pharmacy services; Adam Kautzner, president of Express Scripts; and Heather Cianfrocco, CEO of Optum Rx.

Roughly 37 million people within the U.S. have diabetes, in line with the Centers for Disease Control and Prevention. Roughly 8.4 million diabetes patients depend on insulin.

High prices have forced many Americans to ration insulin or reduce their use of the drug. A 2021 study within the Annals of Internal Medicine found that almost 1 in 5 U.S. adults either skipped, delayed or used less insulin to lower your expenses.

The Inflation Reduction Act, the Democratic plan that Biden signed last yr, capped monthly insulin costs for Medicare beneficiaries at a $35 monthly prescription, however it fell in need of providing protection to diabetes patients who’re covered by private insurance.

Greater than 2 million patients with diabetes who take insulin are privately insured, in line with the Department of Health and Human Services. One other 150,000 or so patients who take insulin shouldn’t have insurance, HHS says.

Last month, Sens. Jeanne Shaheen, D-N.H., and Collins introduced bipartisan laws that might require private medical health insurance to cap prices at $35 monthly for one in every of each insulin type and dosage form.

Those insulin types include rapid, short, intermediate and long acting, in addition to pre-mixed. Dosage forms include vials, pens and inhalers.