The prices of the most frequently prescribed insulins from Eli Lilly and Company have been reduced by 70%, and the Insulin Value Program, which restricts patients' out-of-pocket expenses to $35 or less each month, has been expanded. The effort intends to increase access to Lilly insulin and assist Americans who are navigating a complicated healthcare system, which frequently makes it difficult for them to obtain affordable insulin. On May 1, 2023, the business will lower the list price of Insulin Lispro Injection 100 units/mL, a non-branded insulin product, to $25 a vial, making it the least expensive mealtime insulin on the market.
Eli Lilly's decision to reduce the list price of its most commonly prescribed insulin products by 70% and introduce a biosimilar basal insulin is a strategic move to enhance its market position in the diabetes treatment space. The move could potentially bolster the company's revenue stream and increase its market share, particularly as insulin analogue sales have been experiencing declining growth due to factors such as cost-cutting measures and the introduction of biosimilars. The company's decision to introduce lower-priced biosimilars could improve its competitive position, allowing it to capture a larger share of the insulin market. Additionally, the reduced list prices of its insulins could make them more accessible to patients, improving the company's reputation and boosting patient loyalty.
Lilly's efforts to make insulin more affordable for people with diabetes do not stop with the price cuts on its insulin. In addition to lowering the list price of its insulins, the company is taking further steps to help more people with diabetes access its insulins by implementing a cap on out-of-pocket costs. Effective immediately, people with commercial insurance who use Lilly insulin can benefit from a cap of $35 at participating retail pharmacies.
In addition, people without insurance can obtain Lilly insulin for just $35 per month by downloading the Lilly Insulin Value Program discount card from InsulinAffordability.com. These measures are aimed at making Lilly's insulins more accessible to more people, especially those who are struggling to afford their medications.
The statement builds on Lilly's years-long efforts to increase the number of diabetics who have access to affordable insulin, and the company will begin a national public awareness campaign to highlight its affordability solutions.
Lilly's decision to lower the prices of its older insulin products is a positive development for American diabetes patients who are not covered by Medicare. Despite initial concerns that it could harm Lilly's commercial success, the move is quite well-informed. The company is maintaining premium pricing for its newer insulin products and other diabetes drugs, such as Trulicity and Mounjaro. However, Lilly has reduced the prices of both its biosimilar and branded Humalog, as well as Humulin. Additionally, the company plans to launch Rezvoglar, a cheaper biosimilar version of Sanofi's Lantus, in April. Lilly has also initiated programs that could enable nearly all US patients, regardless of insurance status, to obtain its insulin products for just $35 per month.
Eli Lilly and Company's decision to cut the prices of its insulin products is not expected to cause significant financial harm to the company, as the insulin analogue market has already been experiencing declining sales due to various factors. Medicare's recent cost cuts and the entry of biosimilars have been putting pressure on insulin analogue sales for some time. In 2014, insulin products were worth a collective $20 billion, but they are expected to sink by 2028. Given this trend, Lilly's move to cut the prices of its older insulin products is a politically shrewd decision that may help the company maintain its market position.
With Lilly's announcement of price cuts and expanded accessibility programs for their insulin products, competitors in the market, such as Novo Nordisk and Sanofi, may feel pressure to follow suit. If they do not, they risk losing market share to Lilly and being seen as less patient-centric. However, BioIntel360 suggests that cutting prices may also lead to a significant reduction in revenue for these companies. They may choose to take a more cautious approach, monitoring the impact of Lilly's moves before deciding on their course of action. Ultimately, the decision will depend on their evaluation of the market and their own financial goals, as well as their commitment to providing affordable and accessible insulin to patients.