A leading drugmaker is to significantly reduce the price of its most popular insulins by the beginning of the fourth quarter of this year.
Pharmaceutical company Eli Lilly has unveiled its plans to cut the cost of its Humalog and Humulin insulins by 70%.
This price reduction has been announced after the cost of insulin surged, which has been heavily criticised by US lawmakers.
President Joe Biden’s Inflation Reduction Act aims to ensure there is a $35 cap on insulin for people with Medicare health insurance plans.
Dave Ricks, Chief Executive of Eli Lilly, said: “While we could wait for Congress to act or the healthcare system in general to apply that standard, we’re just applying it ourselves.”
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From social media parody to reality
The price drop comes after a social media gaffe in November of last year in which a parody Twitter account with a blue tick falsely claimed insulin was free.
This forced the drug company’s boss to concede that “prices could be lower”.
Insulin down to $25
Eli Lilly has also announced that it is planning to cut the cost of its non-branded insulin injection Lispro to $25.
In addition, it is looking to develop its Insulin Value Program so that the $35 cap will be eligible for around 85% of pharmacies in the US.
People using pharmacies that are not eligible for the cap can get a rebate through the Eli Lilly website, according to Dave Ricks.
He added: “The price cuts should be the new standard in America. Insulin has become such a pivotal issue because of affordability.”
According to the American Diabetes Association, more than 8 million people with diabetes in the US use insulin.
The US market for insulin is primarily made up of drugs from Eli Lilly, Sanofi and Novo Nordisk.
The advocacy group Insulin Initiative has identified that the price of insulin has increased by 1,200% cent over the last 20 years.
