Following Eli Lilly's decision to drop insulin prices, Danish company Novo Nordisk and French pharmaceutical producer Sanofi have announced price slashes of more than 75% of some of its products, caving into public pressure to curb diabetes treatment costs.
Novo Nordisk will also reduce the wholesale price of unbranded biologics to match its branded products. The changes won’t take effect until January 2024, reports The Washington Post.
A fortnight ago, Eli Lilly lowered insulin product costs by 70% and expanded a programme to cap out-of-pocket prices at $35 a month. At the time, Novo Nordisk said it would assess “emerging patient needs and focus on sustainable solutions”.
The cost of some insulin medications more than doubled between 2007 and 2018, with mounting public outrage following recent revelations that diabetics are rationing their treatment.
Sanofi said the cost of its Lantus (insulin glargine injection) would be slashed by 78%.
Drug Topics reports that additionally, it also will establish a $35 cap on out-of-pocket costs for Lantus for all patients with commercial insurance. The changes go into effect from 1 January 2024.
Last June, Sanofi also made several efforts to lower diabetes medicines costs, including its launch of an unbranded Lantus biologic at less than 60% versus Lantus list price, and a cap on out-of-pocket costs on insulin to $35 for all people without insurance.
Civica Rx, a non-profit, is planning to make generic versions of insulin for sale at no more than $30 a vial in 2024.
The New York Times reports that a federal law that went into effect at the start of this year had already capped out-of-pocket costs for insulin at $35 per month for people covered by Medicare.
President Joe Biden and Democratic lawmakers have taken credit for the drug makers’ moves, but the companies were facing fewer financial incentives to keep prices high on their older insulin products. Their businesses have grown more reliant on newer drugs for diabetes and obesity. They were also facing looming penalties that would have forced them to pay Medicaid back for raising their prices faster than inflation.
For years, Sanofi repeatedly increased the list price of Lantus, which the US Food and Drug Administration first approved in 2000. The company said it was bringing in less from its insulin products after discounts and rebates were accounted for, compared with a decade ago, and it has blamed insurers for not passing savings down to patients.
The New York Times article – Sanofi Plans to Cut the Price of Insulin (Restricted access)
DrugTopics article – Sanofi Cuts Insulin Prices, Joining Eli Lilly and Novo Nordisk (Open access)
See more from MedicalBrief archives:
Eli Lilly slashes insulin prices by 70%
California AG sues big pharma over insulin prices
Insulin price illustrates global web of patent laws protecting Big Pharma