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Novo Nordisk (NVO) Follows Lilly, to Cut Insulin Prices by 75%
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Novo Nordisk (NVO - Free Report) announced plans to lower prices of its some of its insulins, following another large insulin maker, Eli Lilly (LLY - Free Report) , which made a similar announcement earlier this month.
Novo Nordisk said it plans to lower prices of several pre-filled insulin pens and vials by up to 75% in the United States. However, the company plans not to start this until January 2024. The Danish drugmaker is one of the biggest sellers of diabetes medicines in the United States.
The products include pre-filled pens and vials of basal (long-acting), bolus (short-acting) and pre-mix insulins, specifically Levemir, Novolin, NovoLog and NovoLog Mix 70/30. Novo Nordisk said it would slash the list price of its NovoLog insulin by 75% and that of Novolin and Levemir by 65%. It is also lowering the prices of some non-branded insulin products.
Novo Nordisk has not announced any changes to this existing affordability programs, which aim at limiting patients’ insulin costs. At present, Novo Nordisk offers co-pay support for several insulin products. This means eligible patients can pay $25-35 for their insulin. The company also provides a 30-day supply of a combination of insulin medicines for $99.
The stock has risen 34.6% in the past year compared with an increase of 2% for the industry.
Image Source: Zacks Investment Research
In early March, Lilly said it is cutting list prices of some of its popular insulin by 70% to significantly reduce diabetes patients’ out-of-pocket costs.
Lilly is reducing list prices of non-branded insulin, Insulin Lispro Injection, as well as branded insulin, Humalog and Humulin. Lilly is also launching Rezvoglar, which is a biosimilar of Sanofi’s (SNY - Free Report) Lantus. Lilly has priced Rezvoglar at $92 per five-pack of KwikPens, reflecting a 78% discount to Sanofi’s Lantus. The reduced prices should cap patients’ out-of-pocket costs at $35 or less per month.
Lilly and Novo Nordisk’s aggressive price cuts come amid pressure to cut diabetes costs to make insulins affordable for Americans. The prices of diabetes medicines have tripled in the past several years, thus prompting federal lawmakers to call for a cap on insulin prices. The passing of President Joe Biden's Inflation Reduction Act in 2022 capped out-of-pocket costs for insulin in Medicare at $35 per monthly prescription.
Sales of Novo Nordisk’s insulin products are declining as the company already offers rebates and discounts on the same. The reduced list prices should not as such materially hurt Novo Nordisk’s sales. The company’s total insulin sales declined 5% in 2022 on a reported basis and 11% at constant exchange rate (CER). The declining insulin sales are being made up for higher sales of Novo Nordisk’s innovative GLP-1-based diabetes and obesity treatments.
Other than Lilly and Novo Nordisk, Sanofi is also a leading maker of insulins in the United States. Sanofi has not made any official announcement about reducing prices of its insulin products.
Another biotech company worth considering is CRISPR Therapeutics (CRSP - Free Report) , which has a Zacks Rank #2 (Buy).
Loss estimates for 2023 have narrowed from $8.21 per share to $7.54 per share. CRISPR Therapeutics’ stock has lost 31.1% in the past year.
CRISPR Therapeutics beat earnings expectations in two of the four trailing four quarters while missing in the other two. The company delivered a four-quarter earnings surprise of 3.19%, on average.
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Novo Nordisk (NVO) Follows Lilly, to Cut Insulin Prices by 75%
Novo Nordisk (NVO - Free Report) announced plans to lower prices of its some of its insulins, following another large insulin maker, Eli Lilly (LLY - Free Report) , which made a similar announcement earlier this month.
Novo Nordisk said it plans to lower prices of several pre-filled insulin pens and vials by up to 75% in the United States. However, the company plans not to start this until January 2024. The Danish drugmaker is one of the biggest sellers of diabetes medicines in the United States.
The products include pre-filled pens and vials of basal (long-acting), bolus (short-acting) and pre-mix insulins, specifically Levemir, Novolin, NovoLog and NovoLog Mix 70/30. Novo Nordisk said it would slash the list price of its NovoLog insulin by 75% and that of Novolin and Levemir by 65%. It is also lowering the prices of some non-branded insulin products.
Novo Nordisk has not announced any changes to this existing affordability programs, which aim at limiting patients’ insulin costs. At present, Novo Nordisk offers co-pay support for several insulin products. This means eligible patients can pay $25-35 for their insulin. The company also provides a 30-day supply of a combination of insulin medicines for $99.
The stock has risen 34.6% in the past year compared with an increase of 2% for the industry.
Image Source: Zacks Investment Research
In early March, Lilly said it is cutting list prices of some of its popular insulin by 70% to significantly reduce diabetes patients’ out-of-pocket costs.
Lilly is reducing list prices of non-branded insulin, Insulin Lispro Injection, as well as branded insulin, Humalog and Humulin. Lilly is also launching Rezvoglar, which is a biosimilar of Sanofi’s (SNY - Free Report) Lantus. Lilly has priced Rezvoglar at $92 per five-pack of KwikPens, reflecting a 78% discount to Sanofi’s Lantus. The reduced prices should cap patients’ out-of-pocket costs at $35 or less per month.
Lilly and Novo Nordisk’s aggressive price cuts come amid pressure to cut diabetes costs to make insulins affordable for Americans. The prices of diabetes medicines have tripled in the past several years, thus prompting federal lawmakers to call for a cap on insulin prices. The passing of President Joe Biden's Inflation Reduction Act in 2022 capped out-of-pocket costs for insulin in Medicare at $35 per monthly prescription.
Sales of Novo Nordisk’s insulin products are declining as the company already offers rebates and discounts on the same. The reduced list prices should not as such materially hurt Novo Nordisk’s sales. The company’s total insulin sales declined 5% in 2022 on a reported basis and 11% at constant exchange rate (CER). The declining insulin sales are being made up for higher sales of Novo Nordisk’s innovative GLP-1-based diabetes and obesity treatments.
Other than Lilly and Novo Nordisk, Sanofi is also a leading maker of insulins in the United States. Sanofi has not made any official announcement about reducing prices of its insulin products.
Zacks Rank & Another Stock to Consider
Novo Nordisk has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Another biotech company worth considering is CRISPR Therapeutics (CRSP - Free Report) , which has a Zacks Rank #2 (Buy).
Loss estimates for 2023 have narrowed from $8.21 per share to $7.54 per share. CRISPR Therapeutics’ stock has lost 31.1% in the past year.
CRISPR Therapeutics beat earnings expectations in two of the four trailing four quarters while missing in the other two. The company delivered a four-quarter earnings surprise of 3.19%, on average.