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'Much More Needs to Be Done,' Says Sanders as Novo Nordisk Caves on Insulin Price
The senator introduced legislation last week to cap insulin prices at $20 per vial.
Mar 14, 2023
Crediting advocacy groups with pressuring two out of the three pharmaceutical companies that supply insulin to patients with diabetes in the United States to drastically lower their prices, Sen. Bernie Sanders on Tuesday called on the last of the trio, Sanofi, to do the same while arguing price caps should be mandatory—not a choice.
Novo Nordisk on Tuesday announced that it will cut prices by up to 75% for some of its insulin products starting next year, less than two weeks after one of its rival companies, Eli Lilly, said it plans to slash prices for its most widely used insulin products by 70%.
A vial of one of Novo's products, NovoLog, will drop from more than $289 to just over $72, and the insulin product FlexPen will cost $139, down from more than $500, starting January 1, 2024.
The price changes come after the price of insulin for patients has more than tripled in recent decades, with deadly consequences for some of the eight million Americans who rely on synthetic insulin to convert food into energy. A study based on the 2021 National Health Interview Survey last November found that 1.3 million people in the U.S. rationed their insulin supply in 2021 due to the drug's prohibitive cost.
Sanders (I-Vt.) noted that "grassroots pressure" forced Eli Lilly and Novo this month to announce major price cuts, but said that as chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee he "will soon hold a hearing on the need to guarantee insulin at an affordable price to everyone who needs it," suggesting that voluntary price cuts by companies are not sufficient.
Public pressure by groups including Patients for Affordable Drugs and Lower Drug Prices Now has resulted in some recent insulin price reforms, including a provision that took effect in January capping insulin copayments at $35 per month for Medicare recipients.
As Common Dreams reported last week, days after Eli Lilly announced its voluntary price cuts, Sanders, a longtime advocate of affordable insulin, joined Rep. Cori Bush (D-Mo.) in introducing legislation that would prohibit pharmaceutical companies from charging more than $20 for a vial of insulin. President Joe Biden has called for the product to be capped at $35 per vial for all patients—a proposal that Senate Republicans voted down last year.
Novo's announcement, said Biden, "builds on the important progress we made last year when I signed a law to cap insulin at $35 for seniors. I urge all other manufacturers to follow suit and Republicans in Congress to join us and cap insulin at $35 for all Americans."
Advocacy groups also called on Sanofi, the third insulin manufacturer for American patients, to follow its rival companies' lead and introduce price cuts.
"Let's keep fighting," said Lower Drug Prices Now, "so that patients can afford any medicine they need."
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'Time to End the Greed': Sanders Vows Bill to Cap Price of Insulin at $20 Per Vial
"As a result of unacceptable corporate greed, the price of insulin has gone up by over 1,000% since 1996," the Vermont senator said after Eli Lilly announced its price cut.
Mar 02, 2023
Sen. Bernie Sanders on Wednesday announced plans to introduce legislation that would cap U.S. insulin prices at $20 per vial after Eli Lilly pledged to cut the list prices of its most commonly used insulin products by 70%.
Sanders (I-Vt.), the chair of the Senate Health, Education, Labor, and Pensions Committee, said in a statement that "this is what fighting back accomplishes" and urged two other major insulin manufacturers to replicate Eli Lilly's move, which also includes capping monthly out-of-pocket insulin payments at $35 for many people with diabetes.
"At a time when Eli Lilly made over $7 billion in profits last year, public pressure forced them to reduce the price of insulin by 70%," said the Vermont senator. "Now is the time for Sanofi and Novo Nordisk to do the same. Now is the time to end the greed of the pharmaceutical industry and substantially lower the outrageous cost of prescription drugs in America."
In letters to the CEOs of Sanofi and Novo Nordisk—which together with Eli Lilly produce more than 90% of the global insulin supply—Sanders wrote that "people with diabetes should not be forced to pay $98 for a vial of insulin that costs just $8 to manufacture and can be purchased in Canada for just $12."
"I urge you to join Eli Lilly in substantially lowering the price your company charges for insulin and make certain that all Americans can purchase this lifesaving drug," added the senator, who has been scrutinizing the trio's business practices—including price collusion—for years.
"Let's be clear: Insulin is not a new drug," Sanders continued. "It was discovered 100 years ago by Canadian scientists who sold the patent rights of insulin for just $1 because they wanted to save lives, not make pharmaceutical executives extremely wealthy. And yet, as a result of unacceptable corporate greed, the price of insulin has gone up by over 1,000% since 1996, causing 1.3 million people with diabetes to ration insulin last year while your companies made billions of dollars in profits. That is absolutely unacceptable."
\u201cPublic pressure forced Eli Lilly to reduce the price of insulin by 70%. Today, I sent a letter demanding Sanofi and Novo Nordisk do the same. Now is the time to end the greed of the pharmaceutical industry and substantially lower the outrageous cost of prescription drugs.\u201d— Bernie Sanders (@Bernie Sanders) 1677710196
Eli Lilly's announcement was welcomed as a victory for people with diabetes who have been campaigning tirelessly for years to bring down insulin prices in the U.S., where some patients have been forced to pay more than $1,000 a month for the lifesaving medicine.
But the company's move also drew skepticism as advocates remain wary of the limitations of Wednesday's pledge and of Eli Lilly's commitment to keeping prices low, particularly given the pharmaceutical giant's history of lobbying against efforts to rein in prescription drug costs.
In a footnote at the bottom of its Wednesday press release, Eli Lilly states that "government restrictions exclude people enrolled in federal government insurance programs from Lilly's $35 solutions."
People on Medicare are covered by the Inflation Reduction Act's $35-per-month cap on insulin copayments, but low-income people on Medicaid don't appear to be eligible for Eli Lilly's price-cap program.
Additionally, Eli Lilly's 70% price cut for Humalog—the company's most commonly prescribed insulin product—won't take effect until the fourth quarter of this year, "giving Lilly seven more months of high prices even as they are lauded for their corporate responsibility," notedThe American Prospect's Robert Kuttner.
"And since Lilly caps out-of-pocket costs to patients but not necessarily prices charged to insurance companies," Kuttner added, "the result could be cost-shifting and higher insurance premiums."
Such caveats led campaigners to emphasize the necessity of federal action to guarantee that insulin is available and affordable for all who need it.
"Insulin manufacturers have shown time and time again that they will put their CEOs' profits over patients' lives," said Kristen Whitney Daniels, the co-leader of T1International's federal working group and a person living with Type 1 diabetes. "That's why the government also needs to regulate insulin manufacturers to hold them accountable to ensuring the human right to insulin."
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