Eli Lilly & Co., a leading U.S. pharmaceutical company, has announced significant price reductions for its widely used diabetes and weight-loss medications, Mounjaro and Zepbound. The company is bracing for stricter rules at home in Canada. More importantly, they’re preparing, as the whole industry is, for the upcoming introduction of generic alternatives to the blockbuster drug Ozempic.
Eli Lilly will cut the prices of Mounjaro and Zepbound by at least 20%. The new Canadian list price for a one-month supply (four-week supply) is now $300. This is true for both the 2.5 milligram and 5 milligram dosages. Patients will now be charged $420 for the stronger strengths of 7.5 and 10 milligram doses. At the 12.5 and 15 milligram dosages, the price will be reduced to $540. Wholesale prices for these drugs had previously been $398.79-$797.58 wholesale, depending on the dosage. This range was inclusive of a 5.5% distributor markup.
More likely, Eli Lilly has chosen to lower prices in response to new rules that are set to take effect on January 1. Note that this action welcomes the expected market entrance of generic versions of Ozempic and Wegovy after January 4. Experts predict that once generics become available, patients could access these medications at approximately $100 for a four-week supply, significantly lower than current prices.
That’s a big deal—especially since the company just raised prices on these same medications. This was all on top of a strategy to aggressively push patients to the more expensive injector pen alternatives. This decision was greatly informed by the ensuing pressure from U.S. officials calling on drug producers to hike prices in overseas markets.
Eli Lilly’s proactive approach to adjusting the price shows that they are well aware of an increasingly unfavorable environment for pharma in terms of regulations and competition. The Patented Medicine Prices Review Board is all set to roll. They’ll want to finalize rules to review drug prices that are more than what’s charged in some other countries or raising prices more quickly than inflation.
Eli Lilly & Co.’s successes have been nearly unprecedented. In the process, it has recently become the first pharmaceutical company to achieve a market capitalization over $1 trillion. Whatever it might be, the company’s recent pricing move clearly seeks to keep it ahead today. It seeks to address the pressing needs of Canadian patients who are struggling to afford their medicines as prices soar.
