Novo Nordisk has announced that it will cut the retail prices of some of its insulin products in the US. The price drop, which will commence from the first day of next year, will see up to 75% cut for some insulin products, including NovoLog.
Eli Lilly and Sanofi, Novo Nordisk's rival companies also announced to decrease the insulin prices recently.
Novo Nordisk says it aims to increase access to its life-saving medicines and is focusing on providing affordable treatment for the millions of vulnerable diabetes patients.
The New York Times reports that the Novo Nordisk insulin price drop is limited only to the list price of the product and would not affect the cost that patients ultimately bear.
However, Novo Nordisk notes that its already-existing accessible programs will maintain low costs for patients.
Meanwhile, Reuters reports that the list price reductions will begin three years from now, in 2024.
The move by Novo Nordisk and other insulin makers follows mounting pressures from advocacy groups and government officials, who criticized these companies for making insulin unaffordable to millions of Americans with diabetes.
According to a 2018 report in the Journal of the American Medical Association, insulin list prices were found to be 10 times higher in the US than other high-income countries, even though the manufacturing cost stands at $10 per unit.
"Price reductions will be a welcomed relief for the millions of sick Americans that struggle every day to afford their insulin doses," said Utah Senator Bernie Sanders.
However, some are demanding more fundamental changes, including over oligopoly that the three companies have over the insulin market.
The Independent writes that an analysis from 2018 found that average insulin prices stand at around $100, despite the cost of production being under $10.