Sanofi formed a landmark partnership with insulin manufacturers Novo Nordisk and Eli Lilly to help millions of Americans with diabetes afford medication, unveiling a comprehensive strategy involving price caps and savings programs to reduce insulin costs to a maximum of $35 for a multitude of patients.
Significant cuts in the list prices of insulin products across the board complement this transformative endeavor.
While the announcement of these measures dates back to the spring, their full implementation took effect on January 1, a significant action against the steeply rising prices of insulin. According to the American Diabetes Association, the inflation-adjusted cost of insulin surged by 24% between 2017 and 2022, reaching an astounding $22.3 billion in spending in 2022.
In this photo illustration, an insulin pen manufactured by the Novo Nordisk company is displayed on March 14, 2023 in Miami, Florida.
Prioritizing Patients' Welfare
CNN reported that since January 1, Sanofi has capped Lantus out-of-pocket expenditures for commercially insured customers at $35 per month. This cap also applies to uninsured patients at $35.
In September, Novo Nordisk introduced MyInsulinRx, providing qualified patients, including those without insurance, with a 30-day insulin supply for $35. In March, Eli Lilly set a $35 monthly restriction for business insurance customers buying their insulin medicines at participating pharmacies.
Like Civica Rx, the strategic choice to control out-of-pocket payments aligns with the public desire for affordability and new rivals. However, the latter is striving to make and market insulin for $30 per vial. While insulin manufacturers may lose some profit, the goodwill gained will strengthen their ties with patients, building trust and loyalty, according to industry experts.
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Working Together to Help Millions of Diabetics in the US
In addition to cost caps, all three businesses are cutting insulin product list prices to address the affordability challenge, according to US News & World Report. In a daring move, Sanofi cut Lantus' advertised price by 78%, to $96 for prefilled pens and $64 for the 10-milliliter vial.
Following suit, Novo Nordisk has reduced the list price of numerous insulin vials and pens by up to 75%, with NovoLog at $72 per vial and $140 for the FlexPen.
To compete, Eli Lilly has reduced the list pricing of Humalog and Humulin by 70% by 2023, with Humalog now costing $66 a vial.
Major insulin makers are working together to make insulin more available to 8.4 million Americans who need it. One in 4 people struggle to afford their diabetes medicine, which can be fatal.
Congressional interventions and new market players pressured insulin manufacturers to address the insulin affordability crisis and ensure that diabetes patients receive the necessary medication.
According to the US Centers for Disease Control and Prevention, diabetes is the eighth leading cause of mortality in the country and it is more common in low-income adults.
In 2022, diagnosed diabetes costed $413 billion, including $307 billion in direct medical spending and $106 billion in indirect costs. Diabetes-related medical expenses totaled $12,000 per person that year.
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