Recently it was announced by Novo Nordisk U.S.‘ EVP, Jakob Riis, that the Denmark-based company pledges to limit increases in drug prices in the U.S., acknowledging the difficulty many patients with diabetes have when it comes to the ability to afford their medications. Riis said in an article posted on the Novo Nordisk A/S website that future increases in price would be limited to single-digit percentages on an annual basis.
It’s no secret the public has been in an uproar over prescription drug prices that seem to keep soaring. Because so many consumers depend on insulin for their survival (more than six million Americans, according to the CDC), the pressure for Novo Nordisk and other pharmaceutical companies has been tremendous. Approximately half of the company’s revenue comes from insulin, although Novo Nordisk also manufactures treatments for those with hemophilia, along with other diabetes drugs.
The effect on how much patients pay for their drugs is likely to be limited despite the pledge of pharmaceutical companies, including Novo and Allergan (who made a similar promise in September because of the complex system used in the U.S. in setting prices).
Pharmacy-benefit managers are typically offered discounts by pharmaceutical manufacturers as these managers negotiate drug prices on behalf of employers and insurers. Because these managers are offered discounts, rebates, and price concessions, drug companies have raised list prices to offset the costs, which Riis admits puts some patients at a disadvantage when it comes to pricing. Over an 11-year time span between 2002 and 2013, diabetes patients’ costs for insulin nearly tripled.
Ultimately, Novo Nordisk and other pharmaceutical companies are willing to do what they can to limit the increase in drug prices.
At REA JET U.S., we work with dozens of pharmaceutical manufacturers to provide unsurpassed industrial printing solutions. Some of our partners include MEDA Manufacturing GmbH, Merck, Boehringer Ingelheim, Novartis, Teva, and Ursapharm, to name a few. Count on our team for all of your pharma coding and marking needs.