Proactive Investors - Eli Lilly and Co (NYSE:LLY) announced it is reducing the price of most of its commonly prescribed insulins by 70% and the expansion of its Insulin Value Program that caps patient out-of-pocket costs at $35 or less per month following criticism of the pharmaceutical giant over the high price of its insulin products from lawmakers and advocacy groups.
The move also comes after US President Joe Biden’s Inflation Reduction Act capped insulin at $35 for Medicare Part D enrollees, effective January 1, 2023, with a similar cap to take effect for enrollees in Medicare Part B on July 1, 2023.
Eli Lilly said in a statement on Wednesday that it is cutting the list price of its non-branded insulin Insulin Lispro Injection 100 units/mL to $25 a vial, effective May 1, 2023.
From 4Q, 2023, it will be cutting the list price of its most commonly prescribed insulin Humalog (insulin lispro injection) 100 units/mL and Humulin (insulin human) injection 100 units/mL by 70%.
Additionally, it will launch Rezvoglar (insulin glargine-aglr) injection, a basal insulin that is biosimilar to and interchangeable with Lantus (insulin glargine) injection, for $92 per five-pack of KwikPens, at a 78% discount to Lantus, effective April 1, 2023.
"The aggressive price cuts we're announcing today should make a real difference for Americans with diabetes,” Eli Lilly CEO David Ricks said.
“Because these price cuts will take time for the insurance and pharmacy system to implement, we are taking the additional step to immediately cap out-of-pocket costs for patients who use Lilly insulin and are not covered by the recent Medicare Part D cap.”
Following the announcement, Eli Lilly stock had added 1.2% at US$314.98 at mid-morning on Wednesday.