Senate Calls Drug Company CEOs to Testify on Insulin Prices

The top executives for the three largest manufacturers of insulin in the U.S. are scheduled to testify during a hearing of the Senate Health, Education, Labor and Pensions (HELP) Committee on May 10 about lowering prices for diabetes and all pharmaceutical drugs.

Drugmakers Eli Lilly, Novo Nordisk and Sanofi, which combined supply 90% of the insulin to the U.S., have all announced price cuts on the drug this year by at least 70% and plan to cap out-of-pocket prices no higher than $35 on specific insulin drugs for users with commercial insurance.

But Sen. Bernie Sanders, I-Vt., chair of the HELP Committee, said Friday although the price cuts are important steps, “We must make certain that those price reductions go into effect in a way that results in every American getting the insulin they need at an affordable price.

“But that’s not all,” Sanders said in a statement on his website. “We have got to substantially lower the price of all prescription drugs. The United States cannot continue to pay, by far, the highest prices in the world for prescription drugs while drug companies and PBMs [Pharmacy Benefit Managers] make billions in profits. That’s what this hearing is all about.”

David Ricks, chair and CEO of Eli Lilly, Lars Fruergaard Jørgensen, president and CEO of Novo Nordisk, and Paul Hudson, CEO of Sanofi, have been called to testify in front of the committee.

In March, Sanders and Rep. Cori Bush, D-Mo., introduced the Insulin for All Act of 2023, which would cap the price of insulin charged by manufacturers to $20 per 1,000 units.

On March 1, Eli Lilly said it was reducing prices 70% for its most commonly prescribed insulin drugs and it was capping out-of-pocket costs at $35 or less per month, effective May 1.

On March 14, Novo Nordisk said it was slashing prices 75%, effective Jan. 1, while also capping co-pays at $25 or $35 on most products for users with commercial insurance.

On March 16, Sanofi said it will cut the list price of 100 units of Lantus, its most widely prescribed insulin drug in the U.S., by 78%, also effective Jan. 1, and cap out-of-pocket costs at $35 for users with commercial insurance.

Eli Lilly declined to comment when asked about the scheduled hearing, CNBC reported. A Sanofi spokesperson said the company supports efforts to lower costs and believes other parts of the healthcare system need to do more to help patients. Novo Nordisk said its CEO looks forward to “a productive and collaborative discussion about this important issue.”