Price cap move will help Eli Lilly remain dominant player in insulin market, says GlobalData
GlobalData, a data and analytics company, on Monday said that it is likely that Lilly will remain a leading manufacturer in the insulin market and is in a strong position to compete on lower insulin prices.
Recently, Eli Lilly announced that it will reduce the price of its insulin Humalog by 70% in the US and cap the out-of-pocket cost for those on commercial insurance at $35 per month. This is the second time Lilly has significantly reduced the cost of its insulin after lowering the list price of Humalog by 50% in 2019.
Lilly’s move follows on from recent US federal action, the Inflation Reduction Act, that legislated reducing the Medicare beneficiary insulin out-of-pocket costs at $35 per month.
“The future of the insulin market is likely to feature increased competition driven by federally mediated price-capping, the rollout of biosimilars across the global market, and the launch of once-weekly basal insulins from Novo Nordisk and Eli Lilly,” Akash Patel, Pharma Analyst at GlobalData, said in a statement.
Lilly will likely maintain or increase its market share in the basal insulin space as the average out-of-pocket cost for its insulin products is already below the $35 price cap, according to the data and analytics company. However, there is steadily increasing pressure to its market share in China, with several companies developing insulin lispro biosimilars, and alternative lower-priced insulins such as Viatris’s Semglee (insulin glargine).
“The increasing wave of patient advocacy for equity of access to insulin will continue to drive down insulin prices and likely lead to competition between Lilly, Sanofi, and Novo Nordisk for the pricing and sales of their major branded insulins. In the face of continued competition, Lilly has developed a recently authorized biosimilar, Rezvoglar, to Sanofi’s leading branded insulin glargine (Lantus),” Patel added.
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