Novo Nordisk Caps Insulin Prices in Settlement with Minnesota Attorney General

Novo Nordisk, a leading Danish pharmaceutical company, has agreed to cap insulin prices as part of a settlement with Minnesota’s attorney general, who accused the three largest insulin manufacturers of inflating the drug’s cost to astronomical levels. The settlement, filed Monday in a Newark, New Jersey federal court, follows similar agreements reached last year with Eli Lilly and French drugmaker Sanofi, according to Reuters.

Under the terms of the settlement, Novo Nordisk will limit out-of-pocket expenses for patients who pay cash to $35 per monthly prescription, regardless of insurance status. Additionally, the company will provide free insulin to low-income Minnesotans with annual household incomes at or below 400% of the federal poverty level—approximately $128,600 for a family of four. The settlement, which lasts five years, is still pending court approval. Per Reuters, Novo Nordisk denied any wrongdoing in reaching the agreement.

Read more: Massachusetts AG Sues Insulin Makers and PBMs Over Alleged Price-Fixing Scheme

Minnesota Attorney General Keith Ellison, who filed lawsuits against Novo Nordisk, Eli Lilly, and Sanofi, accused the companies of prioritizing profits over patients by setting artificially high list prices and using rebates to negotiate lower prices with pharmacy benefit managers. Insulin, a life-saving drug used by patients with type 1 diabetes and some with type 2 diabetes, has seen its costs skyrocket in recent years. According to Ellison, these settlements mark a significant step toward affordable access to insulin, with reductions in patient costs exceeding 90%.

Eli Lilly and Sanofi reached their respective settlements with Minnesota in February and July 2024. At a press conference, Ellison emphasized the human impact of these legal victories, stating, “For years, manufacturers prioritized making billions in profits over saving lives.”

Novo Nordisk expressed satisfaction with the agreement. A company spokesperson noted that the settlement underscores its dedication to ensuring affordable insulin access. The company, which has U.S. offices in Plainsboro, New Jersey, joins Eli Lilly and Sanofi in facing scrutiny for price-setting practices that allegedly burdened patients relying on insulin to manage their condition.

The lawsuits targeted the manufacturers’ practice of using the wholesale acquisition cost—or list price—as the basis for determining out-of-pocket costs, which plaintiffs argued led to inflated expenses for consumers.

Source: Reuters