Amid pressure from both the public and the Biden administration, a third insulin maker announced it is capping insulin prices. The announcement this week by Sanofi means the three largest insulin producers in the world have instituted price caps in recent weeks.
Eli Lilly and Novo Nordiskpreviously made similar announcements. Together, they make about 90% of the world’s insulin.
Sanofi said Lantus 100 Units/mL will have a $35 per month cap on out-of-pocket costs for all patients with commercial insurance. The company said Lantus is its most popular form of insulin.
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The price cap goes into effect Jan. 1, 2024.
Sanofi says the price cap will drop its price of insulin by 78%.
“Sanofi believes that no one should struggle to pay for their insulin and we are proud of our continued actions to improve access and affordability for millions of patients for many years,” said Olivier Bogillot, head of U.S. general medicines with Sanofi.
The Biden administration welcomed Sanofi’s announcement.
“Sanofi is the latest company to recognize that charging hundreds of dollars for insulin that costs $10 to produce is just wrong, especially when the lives of so many children, parents, and grandparents depend on it,” President Joe Biden said in a statement. “Congress should still pass legislation to ensure everybody can get insulin for no more than $35 per month.”
The announcement comes amid a political battle to cap the price of insulin. Congress passed the Inflation Reduction Act, which included a provision limiting insulin prices for Medicare recipients to $35.
According to the Food and Drug Administration, insulin helps to take the sugar in the blood to other parts of the body. The FDA said that diabetes affects how the body makes and uses insulin.
The Centers for Disease Control and Prevention estimates 37.3 million Americans have diabetes, which accounts for 11.3% of the population.