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Novo Nordisk Expands Insulin Price Cuts Amidst Healthcare Reforms


Published: 10 Dec 2024

Author: Precedence Research

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Novo Nordisk has raised U.S. list prices for several insulins in a groundbreaking effort to make the life-saving drug more accessible to diabetic patients. Price reductions in these areas will take place starting January 1, 2026: e.g. price reductions for numerous products-an impressive 75% for Fiasp (insulin aspart) and 72% for Tresiba (insulin degludec). These reductions have been followed by further reductions already taken at the beginning of the coming year (2024) over other related products, e.g., NovoLog.

Insulin Price

By 2025, Novo Nordisk is planning to phase out certain "unbranded" biosimilar insulin products and focus on the same branded formulations along with affordability for patients. Fiasp and Tresiba are two revolutionary products for diabetes management. Fiasp is an innovation inNovoLog, with vitamin B3 and an amino acid incorporated to facilitate quick absorption and control blood sugar levels. Tresiba comes as a long-acting agent so that people with diabetes spend less time injecting, and diabetes becomes less complex. These products could be the answer to financial woes for millions of Americans with diabetes but with little or no insurance coverage at all. For instance, a person using Fiasp FlexTouch could save more than $400 a month.

Context of the Price Cuts

  • Medicare reforms and changes competitive conditions in the market
  • Price reform under the Medicare scheme by the new prices for insulin products under the Inflation Reduction Act 2022.
  • The initiation of the insulin price reduction program by Eli Lilly in January 2023 with a drop of 70% gave rise to price follow-ups from both Novo Nordisk and Sanofi.
  • In the State of the Union address, the President implored Congress to set an insulin cap at $35 per month for patients.
  • Novo Nordisk brought the challenge against the constitutionality of the IRA, but the New Jersey court dismissed it.

A Broader Push for Affordable Insulin

Novo Nordisk is now changing its tactics when it comes to pricing, because of the demand from markets for cheap insulin, and that is recently becoming a trend in the pharmaceutical industry. This indicates the mounting pressure among pharmaceutical companies to balance profit-making and patient accessibility in a very competitive and reform-driven environment. Thus, the new pricing strategy adopted by Novo Nordisk is a reaffirmation of compliance with their longstanding commitment to patient access while remaining compliant with ongoing changes in regulations. This shift may cause other companies in the industry to reconsider their prices as well, most especially with the looming legislative and public scrutiny on the healthcare sector.

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