Eli Lilly, Novo Nordisk drop as UnitedHealth lowers Insulin costs

Eli Lilly (NYSE:) shares fell on Thursday after UnitedHealth (NYSE:)’s Optum Rx said it will transition eight insulin products, produced by Eli Lilly, Novo Nordisk (NYSE:), and Sanofi (NASDAQ:), to tier one status on formularies starting January 1.

This move is accompanied by a commitment to limit out-of-pocket costs for these insulin products to $35 or less starting January 1, potentially impacting the market dynamics for these pharmaceutical companies.

LLY shares fell 3.7% on the news while NVO stock dipped 1.7%.

“I’ve seen firsthand how high prices for insulin and other necessary medications can cause patients to limit or skip doses,” said Dr. Patrick Conway, chief executive officer of Optum Rx.

“Medicine that people can’t afford is useless, and by taking this important next step to change our formulary, we will lower costs and improve access for more people who need this life-saving medication. Our goal is to make all essential medicines affordable.”

Today, over 70% of Optum Rx users pay less than $35 monthly for insulin. With the recent actions undertaken by Optum Rx, it is anticipated that 98% of all Optum Rx consumers will have access to insulin at a cost of $35 or less per month.