
By Liz Moyer
Investing.com -- Lawmakers are once again trying to get caps on prescription drug pricing across the finish line, and that puts insulin in the spotlight.
The market for insulin is small but about to get more competitive. Eli Lilly and Company (NYSE:LLY), Novo Nordisk A/S (NYSE:NVO) and Sanofi ADR (NASDAQ:SNY) are the primary makers, but a generic version by Civica RX is aiming to be introduced in 2024, at a cost of about $30 a vial, which could upend the current dynamics.
UnitedHealth Group Incorporated's (NYSE:UNH) Optum is working with Sanofi to offer low-cost insulin to the uninsured, including a 30-day supply for $35.
Monthly co-payments on insulin and other diabetes supplies are already capped in 20 states, at $35 or lower in nine of those states.
And California state is exploring how to make its own insulin – by contracting a private drug maker – and offering it for less to residents.
Eli Lilly reported revenue this week that dropped 4% in the second quarter, in part because of lower insulin prices. Shares of Lilly are up 8.9% this year, while Sanofi shares are up 10%, Novo Nordisk is down 8%, and UnitedHealth is up 5.9%.
Getting the price of insulin down has been a key objective for some lawmakers. More than 8 million Americans use insulin to help manage their diabetes, but the costs have soared in the last 20 years, up 40% from 2007 to 2020, according to the Kaiser Family Foundation.
The Senate's new budget offering a package of climate, healthcare and tax proposals aims at putting a cap on out-of-pocket drug costs and allowing Medicare to directly negotiate prescription prices, including for insulin.
“We believe strongly that prescription drug reforms in the Inflation Reduction Act should specifically address the rising cost of insulin,” said Lisa Murdock, the chief advocacy officer for the American Diabetes Association, in a statement last week.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.