Sanofi Becomes the Third Pharmaceutical Company to Cap Insulin Costs at $35

Updated on March 20, 2023

• French pharmaceutical company Sanofi has cut the price of its insulin by 78% on its most widely prescribed insulin, Lantus.
• They have established a $35 cap on out-of-pocket costs for clients with insurance, following Eli Lilly's and Novo Nordisk's example earlier this month.
• Sanofi will also cut the list price of its short-acting Apidra insulin by 70%. 
• The price decrease will go into effect on January 1, 2024. 
• Sanofi, along with Eli Lilly and Novo Nordisk, make up 90% of the US insulin market and have been the subject of increasing outcry over rising medical and pharmaceutical costs.
• Joe Biden said:

"As of this afternoon, all three of the leading insulin producers in America have agreed to substantially reduce their prices, following my calls to expand my $35 cap for seniors to all Americans." 

What's the story?

• International pharmaceutical giant Eli Lilly has capped the monthly cost of insulin at $35 for U.S. customers, representing a 70% decrease in price.
• The changes will be in place by the end of 2023. The reduced price applies to Americans who have private insurance and use participating pharmacies.
• The decision comes in light of dissatisfaction over the rising cost of out-of-pocket diabetes medication like Eli Lilly's Humalog and Humulin.

Diabetes in America

• According to the Centers for Disease Control and Prevention (CDC), 37.3 million Americans have diabetes, and more than eight million people take insulin to manage the disease. Research published in the Lancet reported diabetes is the fastest-growing chronic condition globally. 
• Currently, 96 million Americans — 38% of the population — have prediabetes, or elevated blood sugar levels, that puts them at heightened risk.

The cost of diabetes

• In 1923, the researchers who discovered insulin sold its patent for $1, hoping to ensure the treatment was available to patients at an affordable price. The average price of insulin nearly tripled between 2002 and 2013, according to the American Diabetes Association. 
• A CDC study found that at least 16.5% of people in the U.S. are rationing their insulin because of its high cost. Most diabetics use one to three monthly vials to control their blood sugar.
• The cost of a vial of Lilly's Humalog medication before the price caps for people without health insurance was $275.
• Lilly is also reducing the price of its non-branded insulin Lispro to $25 a vial beginning on May 1. Its current list price is $82.41 for a vial.
• A Rand study found that the average price per vial of insulin across all drug companies in the U.S. was more than $98 in 2018, compared to less than $7 in Australia, $12 in Canada, and $8 in the UK. Many Americans travel to Canada and Mexico to buy insulin at pharmacies for a drastically lower price.
• Eli Lilly CEO David A Ricks said:

"[W]hile the current healthcare system provides access to insulin for most people with diabetes, it still does not provide affordable insulin for everyone and that needs to change. The aggressive price cuts we're announcing today should make a real difference."

• The U.S. passed a law capping monthly costs at $35 last year, but it only applied to patients with certain types of government health insurance, and prices remained high for individuals with private health insurance.
• Last year, President Joe Biden fought for $35 insulin caps but was defeated by Congress. He called Lilly's announcement "huge news" and said:

“[F]or far too long, American families have been crushed by drug costs many times higher than what people in other countries are charged for the same prescriptions. Insulin costs less than $10 to make, but Americans are sometimes forced to pay over $300 for it. It’s flat wrong."

Do you think insulin should be free for all Americans?

—Emma Kansiz

(Photo credit: iStock/ozdigital)