Novo Nordisk becomes second pharmaceutical company to cut insulin prices

Danish pharmaceutical company Novo Nordisk has announced a reduction in US list prices of several insulin products by up to 75% for people living with type 1 and type 2 diabetes. It became the second drugmaker to do so after Eli Lilly announced earlier this month that it was limiting personal insulin spending to $35 a month.

Novo Nordisk’s products range from pre-filled pens to basal (long acting), bolus (short acting) and premix vials, including Levemir, Novolin, NovoLog and NovoLog Mix 70/30. The company is also lowering the list price of non-branded biologics to match the discounted price of each eligible brand-name insulin. These changes will come into effect on January 1, 2024.

WHY IS IT IMPORTANT

Novo Nordisk said it acknowledges that some patients find it difficult to pay for medical services, including insulin. The company continues to strive to reduce the burden of out-of-pocket spending by helping to transform a complex pricing system and making pricing more predictable.

American Diabetes Association Chief Advocate Lisa Murdoch said: “We are pleased that more manufacturers continue to take steps to make insulin more affordable, and we hope others will follow suit.” The ADA said it led to caps on insulin cost sharing in 22 states and the District of Columbia, and now it’s the first-ever federal Medicare copay cap.

The Inflation Reduction Act’s insulin provisions limit a Medicare Part B beneficiary’s contribution to $35 per month’s supply of insulin.

BIG TREND

Earlier this month, Eli Lilly announced it was cutting the list price of its insulin by 70% and capping out-of-pocket spending at $35 a month as part of its insulin value-added program. Lilly limited out-of-pocket spending to $35 at participating retail pharmacies for people with commercial insurance using Lilly’s insulin.

An HHS report showed that approximately 1.5 million people in Medicare saved thanks to the $35 cap on their monthly supply of insulin under the Inflation Reduction Act.

The report also found that in 2019, the national out-of-pocket average was $58 for a single insulin refill, typically for a 30-day supply. The report said patients with private insurance or Medicare paid an average of about $63 per inhaler, and one in five Americans taking insulin paid more than $70 per prescription.

IN RECORDING

“We are working to develop a sustainable path forward that balances patient accessibility, market dynamics and changing policy changes,” said Steve Albers, senior vice president of market access and public relations at Novo Nordisk. “Novo Nordisk remains committed to ensuring that patients living with diabetes can afford our insulins, and we take this responsibility seriously.”

Twitter: @SusanJMorse
Write to the author: [email protected]

Salim Ismail will provide more details in his HIMSS23 presentation “Leaders Summit Keynote: Disruptive Convergence”. It is scheduled for Monday, April 17 from 3:45 pm to 4:30 pm PT at the Marriott Marquis Chicago Level 4 Grand Horizon Ballroom.