Diabetes Drug Giant Sanofi Cuts Insulin Prices by Up to 78%

Sanofi also said it would cap a Lantus patient’s monthly out-of-pocket cost at $35. 

“No one should struggle to pay for their insulin,” said

Olivier Bogillot,

Sanofi’s head of U.S. general medicines.

Sanofi is one of the largest makers of insulin, along with

Eli Lilly

& Co. and Novo Nordisk A/S, both of which recently said they would slash insulin prices.

The moves come as lawmakers have stepped up criticism of insulin prices, which can cost hundreds of dollars a month after their makers raised prices.

For many people with diabetes who are insured, Sanofi’s actions might not lead to an immediate drop in costs, because patients pay fixed monthly copays that might not change in the short-term. However, price cuts could help people without insurance.

Nor might the price moves affect Sanofi, because the company hasn’t been getting paid the full list price for its products due to discounting.

A Sanofi spokesman said the financial impact of the price cuts will depend on negotiations with the companies that pay for medicines, among other factors.

Insulin injections are a key treatment for people with diabetes, a condition that affects an estimated 37 million Americans who have high blood-sugar levels because they don’t make insulin on their own or don’t make enough to use it well.

The injections help people with diabetes manage their blood-sugar levels and avoid the kidney, vision and other health problems caused by uncontrolled levels.

Manufacturers raised list prices for their insulins significantly during the 2010s. The companies said they didn’t collect all of the increases, because they had to pay larger rebates to the companies that manage drug benefits.

Yet patients could face hefty costs, depending on whether they had insurance to pay most of the price, and if they were insured, what their monthly copay or other out-of-pocket share was.

Due to the costs, insulin’s affordability has emerged as a political flashpoint in recent years. Both Democrats and Republicans criticized high prices. The Inflation Reduction Act capped out-of-pocket cost for insulin at $35 a month for people on Medicare.

Senate Majority Leader

Chuck Schumer

(D., N.Y.), in a speech from the floor of the Senate on Wednesday, urged Sanofi to follow its rivals and quickly lower its insulin prices.

Sanofi had taken steps that it said would make its insulins more affordable, including launching an unbranded version of Lantus at a 60% discount to the brand. It also capped, at $35, the monthly out-of-pocket costs for all its insulins for uninsured patients.

Under Sanofi’s new plans, the cap would expand to commercially insured patients taking Lantus, in addition to the price cuts.

Earlier this month, Lilly said it planned to reduce list prices for its most commonly prescribed insulin products by 70%, starting in the fourth quarter of 2023. The drugmaker also plans to expand a $35 monthly cap on patients’ out-of-pocket costs.

Novo said this week it would cut the list prices of its NovoLog insulin by 75% and of Novolin and Levemir by 65%, starting in January 2024. The company also plans to cut prices for its unbranded insulin products to match the lower price of its corresponding brands, it said.

—Peter Loftus contributed to this article.

Sanofi also said it would cap a Lantus patient’s monthly out-of-pocket cost at $35. 

“No one should struggle to pay for their insulin,” said

Olivier Bogillot,

Sanofi’s head of U.S. general medicines.

Sanofi is one of the largest makers of insulin, along with

Eli Lilly

& Co. and Novo Nordisk A/S, both of which recently said they would slash insulin prices.

The moves come as lawmakers have stepped up criticism of insulin prices, which can cost hundreds of dollars a month after their makers raised prices.

For many people with diabetes who are insured, Sanofi’s actions might not lead to an immediate drop in costs, because patients pay fixed monthly copays that might not change in the short-term. However, price cuts could help people without insurance.

Nor might the price moves affect Sanofi, because the company hasn’t been getting paid the full list price for its products due to discounting.

A Sanofi spokesman said the financial impact of the price cuts will depend on negotiations with the companies that pay for medicines, among other factors.

Insulin injections are a key treatment for people with diabetes, a condition that affects an estimated 37 million Americans who have high blood-sugar levels because they don’t make insulin on their own or don’t make enough to use it well.

The injections help people with diabetes manage their blood-sugar levels and avoid the kidney, vision and other health problems caused by uncontrolled levels.

Manufacturers raised list prices for their insulins significantly during the 2010s. The companies said they didn’t collect all of the increases, because they had to pay larger rebates to the companies that manage drug benefits.

Yet patients could face hefty costs, depending on whether they had insurance to pay most of the price, and if they were insured, what their monthly copay or other out-of-pocket share was.

Due to the costs, insulin’s affordability has emerged as a political flashpoint in recent years. Both Democrats and Republicans criticized high prices. The Inflation Reduction Act capped out-of-pocket cost for insulin at $35 a month for people on Medicare.

Senate Majority Leader

Chuck Schumer

(D., N.Y.), in a speech from the floor of the Senate on Wednesday, urged Sanofi to follow its rivals and quickly lower its insulin prices.

Sanofi had taken steps that it said would make its insulins more affordable, including launching an unbranded version of Lantus at a 60% discount to the brand. It also capped, at $35, the monthly out-of-pocket costs for all its insulins for uninsured patients.

Under Sanofi’s new plans, the cap would expand to commercially insured patients taking Lantus, in addition to the price cuts.

Earlier this month, Lilly said it planned to reduce list prices for its most commonly prescribed insulin products by 70%, starting in the fourth quarter of 2023. The drugmaker also plans to expand a $35 monthly cap on patients’ out-of-pocket costs.

Novo said this week it would cut the list prices of its NovoLog insulin by 75% and of Novolin and Levemir by 65%, starting in January 2024. The company also plans to cut prices for its unbranded insulin products to match the lower price of its corresponding brands, it said.

—Peter Loftus contributed to this article.