Novo Nordisk slashes US insulin prices by up to 75%: NPR

This April 24, 2008 file photo shows the former North American headquarters of Novo Nordisk Inc., in Plainsboro, NJ. Eli Lilly.

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Mel Evans/AP

This April 24, 2008 file photo shows the former North American headquarters of Novo Nordisk Inc., in Plainsboro, NJ. Eli Lilly.

Mel Evans/AP

Novo Nordisk will begin slashing some US insulin prices by up to 75% next year, following a path set by rival Eli Lilly earlier this month.

The Danish drugmaker said on Tuesday that pre-filled pens and vials of long- and short-acting insulins will be reduced in price. They include Levemir, Novolin, NovoLog and NovoLog Mix70/30.

Novo will also reduce the list price of unbranded products such as Insulin Aspart to match the lower price of the branded insulins.

The price reductions will take effect on January 1. A vial of NovoLog and NovoLog Mix 70/30 is down 75% from $289.36 to $72.34. FlexPen options drop from over $500 to $139.71.

Levemir and Novolin vials and FlexPens will drop 65% from their current list prices.

List prices are what a drug company initially sets for a product and what people who don’t have insurance or have plans with high deductibles sometimes have to pay.

Patient advocates have long advocated for insulin price reductions to help uninsured people who wouldn’t be hit by price caps tied to insurance coverage. They have noted that high insulin prices force many people to ration doses, which can be dangerous to their health.

Research has shown that prices for insulin have more than tripled in the past two decades. There is increasing pressure on drug companies to help patients.

Insulin affordability in the United States largely depends on whether patients have health insurance and the details of that coverage. For example, people with employer-sponsored coverage may pay little out of pocket for their insulin or they may pay hundreds of dollars if they have to pay a high deductible before coverage kicks in.

High deductibles are also common with coverage purchased through the individual insurance market.

Major insulin manufacturers such as Lilly, Novo and the French pharmaceutical company Sanofi have said they offer various assistance programs to help patients with costs. That could include free refills for low-income earners and cheaper versions of older insulins.

But high list prices remain a problem.

David Ricks, CEO of Eli Lilly and Co., noted earlier this month that discounts the drugmaker offers off list prices often don’t reach patients through insurers or pharmacy managers.

The Indianapolis-based drugmaker said on March 1 that it will cut list prices for its most commonly prescribed insulin, Humalog, and for another insulin, Humulin, by 70% or more in the fourth quarter, which begins in October.

The federal government in January began applying a $35 cap on monthly out-of-pocket expenses for patients with coverage through its Medicare program for people age 65 and older or those with certain disabilities or illnesses.

Insulin is made by the pancreas and used by the body to convert food into energy. People with diabetes do not produce enough insulin. Those with type 1 diabetes must take insulin every day to survive.

According to the American Diabetes Association, more than 8 million Americans use insulin.

The Wall Street Journal first reported the price cuts on Tuesday morning.