Drugmaker Eli Lilly says it will cut insulin prices by 70%

Some insulin could be getting a major price cut.

More than 7 million Americans depend on insulation. For more than a million, it’s life-saving. 

But it’s expensive. One study found that a quarter of insulin users have had to ration or skip taking it because of cost.

The average cost of producing one insulin dose is less than $10. But companies reportedly sell it for upwards of $200. 

The price of the medication has also jumped a shocking 600% over the last 20 years. 

There are three major companies that control the insulin market in the U.S.: Eli Lilly, Novo Nordisk, and Sanofi. 

These three companies essentially get to set the prices they want. 

Now, Eli Lilly has decided to cut some of their prices as soon as this year, CNN reports.

Eli Lilly will cut list prices by 70% for its most commonly prescribed forms of insulin, Humalog and Humulin, beginning from the fourth quarter of this year, the drugmaker said on Wednesday.

The move comes amid criticism of healthcare companies by U.S. lawmakers over the rising costs of insulin, with President Joe Biden’s signature Inflation Reduction Act including a $35 cap on insulin for those enrolled in Medicare health insurance plans.

Eli Lilly’s chief executive Dave Ricks said that while the company could wait for Congress to act or the healthcare system in general to apply the new standard, the company is applying it to itself. 

The drugmaker will also lower the price of its non-branded insulin injection Lispro to $25 a vial and expand its Insulin Value Program, under which the $35 cap will apply to about 85% of US pharmacies.

Biden heralded the announcement as “a big deal.” He urged other pharmaceutical companies to cut insulin prices.

But before everyone hails Eli Lilly as a hero, experts warn that the price cuts only apply to some of the company’s older products. 

Eli Lilly said it wants to help Americans navigate the U.S.’s “complex health care system.” The move also comes amid growing pressure from lawmakers and activists to make insulin more accessible.

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