Novo Nordisk Inc. NovoLog brand insulin pens are arranged for a photograph within the Brooklyn borough of Latest York, U.S., on Friday, April 5, 2019.
Alex Flynn | Bloomberg | Getty Images
Novo Nordisk on Tuesday announced plans to slash the value of several insulin drugs by as much as 75% within the U.S., becoming the newest drugmaker to make sharp price cuts after years of public outrage over the high cost of diabetes care.Â
Novo Nordisk, one in all the world’s biggest insulin makers, will cut the list price of its NovoLog insulin by 75% and the costs for Levemir and Novolin by 65%, the corporate said in a press release. The value changes will go into effect on Jan. 1, 2024. They are going to cover insulins that are available vials and injection pens.
NovoLog’s list price will fall to $139.71 from $558.83 for a pack of 5 injection pens. For a vial, the value will decrease to $72.34 from $289.36.Â
The corporate also said it plans to cut back the list price of its unbranded insulin products to match the lowered price of every respective branded insulin.Â
“We have now been working to develop a sustainable path forward that balances patient affordability, market dynamics, and evolving policy changes,” Steve Albers, Novo Nordisk’s senior vp of market access and public affairs, said in the discharge. “Novo Nordisk stays committed to making sure patients living with diabetes can afford our insulins, a responsibility we take seriously.”
A Novo Nordisk spokesperson also told CNBC that the value cuts “have been in development for a lot of months, but on account of increased stakeholder interest, we accelerated to announce now.”
Novo Nordisk’s actions were first reported by the Wall Street Journal.
The announcement comes two weeks after drugmaker Eli Lilly said it will cut the costs of its mostly prescribed insulins by 70% and expand a $35 monthly cap on patients’ out-of-pocket costs starting within the fourth quarter. Novo Nordisk, Lilly and Sanofi control over 90% of the worldwide insulin market.Â
The move also comes after insulin manufacturers faced years of pressure from lawmakers to make the lifesaving hormone cheaper for individuals with diabetes.
President Joe Biden on Tuesday said over Twitter that he was “pleased” with Novo Nordisk’s announcement.
“This builds on the necessary progress we made last yr once I signed a law to cap insulin at $35 for seniors,” he said. “I urge others to follow.”
The Inflation Reduction Act capped monthly insulin costs for Medicare beneficiaries at $35 per monthly prescription, but it surely fell wanting providing protection to diabetes patients who’re covered by private insurance.
Sen. Bernie Sanders, a Vermont independent and the chairman of the Senate Health, Education, Labor and Pensions Committee, said in a Twitter post the announcement is “excellent news” and called on Sanofi to follow suit.
“Due to grassroots pressure Eli Lilly and Novo Nordisk have now cut the value of insulin…But far more must be done,” Sanders said, adding that the Senate would hold a hearing “on the necessity to guarantee insulin at an inexpensive price to everyone who needs it.”
Earlier this month, the senator introduced a bill that may cap the list price of insulin at $20 per vial.
High prices have forced many Americans to ration insulin or reduce their use of the drug. A study within the Annals of Internal Medicine found that in 2021, nearly 1 in 5 U.S. adults either skipped, delayed or used less insulin to get monetary savings.
About 37 million people within the U.S., or 11.3% of the country’s population, have diabetes, based on the Centers for Disease Control and Prevention.
