USA — Eli Lilly is set to reduce insulin prices and expand cost cap for insured patients, offering relief to those with diabetes who have to pay high annual costs for insulin.

These moves are expected to provide critical relief to some people with diabetes who can face annual costs of more than US$1,000 for insulin, which they need to survive.

The changes by Lilly come at a time when lawmakers and patient advocates have been pressuring drugmakers to address the issue of soaring drug prices.

The high cost of insulin has been a major concern for people with diabetes, especially those who are uninsured or underinsured.

According to a recent survey, 25% of patients with type 1 diabetes and 18% of patients with type 2 diabetes have reported rationing their insulin due to the high cost.

This can lead to serious health consequences, including hospitalizations and even death.

Lilly’s decision to cut the list price for its most commonly prescribed insulin, Humalog, and for another insulin, Humulin, by 70% in the fourth quarter, will be a significant relief for many patients.

The drugmaker didn’t provide details on what the new prices would be, but patient advocates are hopeful that the cuts will make a significant impact.

Stacie Dusetzina, a health policy professor at Vanderbilt University who studies drug costs, said that Lilly’s planned cuts “could actually provide some substantial price relief.”

She also noted that the moves are unlikely to affect Lilly financially, as the insulins are older and face competition from newer drugs.

In addition to the price cuts, Lilly is also launching a biosimilar insulin to compete with Sanofi’s Lantus in April and cutting the price of its authorized generic version of Humalog to US$25 a vial starting in May.

These moves are expected to provide more options for patients and further reduce costs.

Lilly CEO David Ricks acknowledged that it will take time for insurers and the pharmacy system to implement the price cuts.

Therefore, the drugmaker will immediately cap monthly out-of-pocket costs at US$35 for people who are not covered by Medicare’s prescription drug program.

This move will provide immediate relief to patients who are struggling to afford their insulin.

The global insulin market, valued at US$21 billion in 2012, is largely dominated by three multinational manufacturers – Eli Lilly, Novo Nordisk, and Sanofi – which control 99% of the market by value and 96% by volume.

The increasing use of expensive insulin analogs has resulted in rising insulin prices and spending, making it challenging for health systems and individuals worldwide to afford insulin.

The Addressing the Challenges and Constraints of Insulin Sources and Supply study in 26 countries revealed a wide range of government procurement prices for human insulin, with the median price of a 10-ml, 100-IU/ml vial of human insulin being US$4.30 (in 1996 US dollars).

The price variation was most significant in low-income and lower-middle-income countries, where the median prices were the highest, ranging from US$2.50-US$11.50 and US$1.00-US$12.50, respectively.

In comparison, high-income countries had median prices of US$3.20-US$18.10, while upper middle-income countries had median prices of US$1.50-US$7.10.

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