Eli Lilly’s big insulin announcement

Eli Lilly, one of the world’s top-three insulin producers, yesterday announced plans to cap the out-of-pocket costs of its insulin at $35/month for all US patients, regardless of insurance status. The company also said it would cut the list prices for its two most-prescribed insulin products, Humalog and Humulin, by 70%.

⏩ Driving the moves… In an interview with CNN, Eli Lilly CEO David Ricks said the decision came as a result of conversations between the company and congressional members from both parties about insulin prices in the US, which have increased by ~9x over the past two decades.

• In 2018, one vial of insulin – which lasts about 10 to 15 days – cost an average of $98.70 in the US, higher than any other country. In second place? Japan, with an average cost of $14.40 per vial.

📸 Big picture: With US costs so high, some of the 8.4 million Americans using insulin injections for diabetes have been spending a large percentage of their income on the medicine. Many are also forced to ration its use due to the price tag.

• A peer-reviewed study from last year found 14+% of all daily insulin users in America spent at least 40% of their income on the medicine, after accounting for food and housing.
• A separate peer-reviewed study published in November found 1.3 million Americans rationed their insulin use in 2021 due to its high cost.