Under Biden's Pressure... Eli Lilly Cuts Insulin Prices by 70%

A major pharmaceutical company facing pressure from the Biden administration to lower insulin prices for diabetes patients is finally cutting prices by 70%.

Indianapolis-based pharmaceutical company Eli Lilly announced on the 1st (local time) that it will reduce the prices of its most commonly prescribed insulin products, Humalog and Humulin, by 70% starting from the fourth quarter.

Additionally, Eli Lilly will lower the price of its Lispro insulin from $82 per vial to $25 starting May 1st. This is the lowest price among all insulin products available on the market.

Furthermore, Eli Lilly plans to expand its "Insulin Value Program," which limits out-of-pocket costs for insulin purchases to under $35 per month, to include private insurance holders as well.

[Image source=AP Yonhap News]

This move comes amid increasing pressure from the Biden administration to reduce insulin prices. Under the Inflation Reduction Act (IRA), Medicare beneficiaries (primarily seniors aged 65 and older) only need to pay up to $35 per month for insulin purchases. However, it has been pointed out that those with private insurance or no insurance at all are still exposed to high costs. According to the American Diabetes Association, about 40% of diabetes patients have private insurance, and 5% are uninsured.

In response, President Biden publicly urged in his State of the Union address that insulin prices be lowered to $35 or less per month for all diabetes patients. On the same day, President Biden welcomed Eli Lilly’s decision via Twitter and called on other pharmaceutical companies to join this initiative.

David Ricks, CEO of Eli Lilly, emphasized, "The aggressive price reduction we announced today will create real change for Americans living with diabetes." Currently, the price of Humalog is $530 for a 5-pack of injection pens and $274 per vial.

Meanwhile, on the morning of the announcement, Eli Lilly’s stock was trading more than 1% higher compared to the previous session on the New York Stock Exchange.