Here’s why slashing insulin prices will actually save Big Pharma money

Heavyweight insulin maker Novo Nordisk said Tuesday that it will lower list prices for some of its insulin products by up to 75 percent by the end of the year, following in the footsteps of Eli Lilly, which made a similar announcement at the start of the month. Experts expect the third top insulin maker in the US, Sanofi, will follow suit.

The price cuts come after years of escalating public backlash to the companies' steep price hikes on insulin, which many advocates have described as price gouging. An analysis from 2018 found that insulin list prices were set five- to ten-times higher in the US than in other high-income countries, with average standardized units of insulin going for nearly $100. The cost of producing the products, even the newer insulins, generally falls under $10.

In its announcement Tuesday, Novo Nordisk said that it will cut the prices of several products, including Levemir, Novolin, NovoLog, and NovoLog Mix 70/30. With the 75 percent cut, a 10mL vial of NovoLog will drop from $289.36 to $72.34. A NovoLog Mix 70/30 FlexPen will drop from $558.83 to $139.71.