LLY Stock Alert: Eli Lilly Slashes Insulin Prices, Caps Patient Costs

Source: shutterstock.com/Michael Vi

Here’s a positive news item for U.S. insulin users. Drugmaker Eli Lilly (NYSE:LLY) just revealed that it’s reducing the cost of its most commonly prescribed insulin products by 70%. Not only that, but Eli Lilly also plans to expand its Insulin Value Program, which limits patients’ out-of-pocket costs to $35 per month or less. In response to all of this news, LLY stock is moving slightly higher in early trading.

Eli Lilly is a giant in the U.S. pharmaceutical market and has a strong influence on many drug and treatment prices. So, it’s a big deal that the company is slashing the list prices for a number of its insulin products.

These price cuts will apply to specified Eli Lilly’s Insulin Lispro Injection products (starting May 1), as well as to its Humalog and Humulin insulin products (starting in the fourth quarter of 2023). In addition, Eli Lilly is launching an injectable insulin product called Rezvoglar. Starting on April 1, Rezvoglar will be available “for $92 per five pack of KwikPens.”

What’s Happening With LLY Stock?

It might seem like Eli Lilly’s reduced-price insulin products could inhibit revenue generation for the company. However, the company may be able to sell more of these products by making them more affordable. Consequently, financial traders are pushing LLY stock more than 1% higher as of this writing.

Along with Eli Lilly’s upcoming price cuts, the company is taking other steps to help make insulin more affordable. Per the release, the company said the following:

“Effective immediately, Lilly will automatically cap out-of-pocket costs at $35 at participating retail pharmacies for people with commercial insurance using Lilly insulin.”

Of course, not every patient has this type of insurance. So, Eli Lilly also provided a website to download a savings card “to receive Lilly insulins for $35 per month.”

Eli Lilly may end up setting a precedent with these steps to make insulin more accessible for patients. Will other major pharmaceutical companies follow its lead? Only time will tell. What’s for certain, though, is that LLY stock headed north soon after the insulin price reduction news was released.

On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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