Novo Nordisk to slash prices for insulin
Drugmaker Novo Nordisk said it will slash the list prices of several insulin products by as much as 75%, the latest major producer to cut prices after public pressure to curb the cost of diabetes treatment.
The Danish company said it will also reduce the wholesale price of unbranded biologics to match its branded products. The changes will take effect Jan 1.
“We have been working to develop a sustainable path forward that balances patient affordability, market dynamics, and evolving policy changes,” Steve Albers, a senior vice president for the company, said in a statement.
The move comes two weeks after Eli Lilly lowered prices of its insulin products by 70% and expanded a program to cap out-of-pocket prices at $35 per month. At the time, Novo Nordisk said it would assess “emerging patient needs and focus on sustainable solutions.”
People with diabetes have a chronic insulin deficiency and often take regular injections to stay healthy. About 37 million Americans live with diabetes, according to the latest data from the U.S. Centers for Disease Control and Prevention, though some use other methods to control their blood sugar.
People with Type 2 diabetes take insulin to regulate their blood sugar, while those with Type 1 diabetes need it to stay alive.
The cost of some insulin medications more than doubled between 2007 and 2018, according to the medical journal Lancet, with some people paying more than $1,000 when higher doses are required. Insulin costs have become the focus of mounting public outrage as studies have shown that diabetics are rationing the treatment. Activists have called for lower prices in public demonstrations, and President Joe Biden highlighted the issue in his State of the Union address.
The actions by Novo Nordisk and Eli Lilly likely won’t affect most diabetics who are covered by commercial insurance, experts say, but the moves are expected to deliver meaningful savings for uninsured diabetics and those with high-deductible health plans.