Eli Lilly pharmaceutical company will be reducing the price of its diabetes medicine insulin for the second time. In the cost-cutting decision,insulin Humalog price will be reduced by 70% in the US and for those on commercial insurance, it will be sold at $35 per month. Before they had reduced the cost of its insulin Humalog by 50% in 2019.
As a result of these pricing measures, it is likely that Lilly will remain a leading manufacturer in the insulin market and is in a strong position to compete on lower insulin prices, says GlobalData, a leading data and analytics company.
Benefits of Price Cap Move in Insulin Market
Lilly’s move follows from recent US federal action, the Inflation Reduction Act, that legislated reducing the Medicare beneficiary insulin out-of-pocket costs to $35 per month.
The future of the insulin market is likely to feature increased competition driven by federally mediated price-capping, the rollout of biosimilars across the global market, and the launch of once-weekly basal insulins from Novo Nordisk and Eli Lilly.
However, there is steadily increasing pressure on its market share in China, with several companies developing insulin lispro biosimilars, and alternative lower-priced insulins such as Viatris’s Semglee (insulin glargine).
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The increasing wave of patient advocacy for equity of access to insulin will continue to drive down insulin prices and likely lead to competition between Lilly, Sanofi, and Novo Nordisk for the pricing and sales of their major branded insulins. In the face of continued competition, Lilly has developed a recently authorized biosimilar, Rezvoglar, to Sanofi’s leading branded insulin glargine (Lantus).
Source: Medindia
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