As of late summer, Eli Lilly & Co. has pulled the same stunt in Canada with its major diabetes and anti-obesity medications. The Trump administration has brought serious pressure to bear on pharmaceutical companies. They would like to see these companies adjust their pricing models in foreign markets to offset lost revenue from the U.S. This change in strategy puts the company’s pricing in line with the expectations of the cutthroat U.S. market. What it’s doing, too, is guaranteeing continued high profitability.
Approximately two weeks ago, former President Donald Trump sent letters to 17 drug companies, including Eli Lilly & Co., advocating for price increases in non-U.S. markets. Addressing the disparity in drug prices between the United States and other countries is one of Trump’s goals. As a result, he has been a constant drumbeat in bringing attention to this huge, critical issue. The average U.S. drug prices are over three times higher than those in Canada.
Eli Lilly & Co. has proactively moved to lower prices in the United Kingdom. They have now standardized these prices with other European markets. In the case of their KwikPen, which are used to administer insulin, their wholesale price has a $300 plus range. Depending on the dose, it is now anywhere from $387 to $773. Patients who depend on this medicine could be looking at yearly bills of more than $10,000.
Eli Lilly & Co. is adjusting the pricing structure of its diabetes treatments, Mounjaro and Zepbound, which are designed to reflect their value to individuals, health systems, and society. Despite both medications being accessible through select private insurance plans, concerns regarding their pricing strategy for accessibility have been exacerbated.
“Both Mounjaro and Zepbound are priced to reflect the value they can provide to individuals, health systems, and society in treating type 2 diabetes and obesity.” – Ethan Pigott
Eli Lilly & Co. sells Mounjaro and Zepbound in the United States. Its direct-to-consumer prices vary from $349 to $1,049, depending on the dosage. The wholesale price for Zepbound alone is $1,086. This stark contrast in pricing underscores the company’s approach to balancing profitability while adhering to regulatory pressures and market expectations.
The Trump administration has signaled their seriousness about drug pricing from the start. So in May, Trump acted—sort of. He directed Health Secretary Robert Kennedy Jr. to negotiate with pharma for the introduction of “most favored nation” prices on all medicines. The intent of this policy is to avoid any harm to American consumers. Second, it ensures that they will never pay more for drugs than citizens of foreign countries.
The administration is pursuing an unusual national-security investigation into the U.S. pharmaceutical sector. This would lead to tariff increases reaching 200%, further complicating the situation for pharmaceutical manufacturers such as Eli Lilly & Co.
“Broad tariffs would raise costs, limit patient access, and undermine American leadership, especially for companies already investing heavily in domestic manufacturing.” – Eli Lilly & Co.
Amidst these developments, Eli Lilly & Co. remains committed to supporting patients currently using its vial format for medication delivery while prioritizing the KwikPen device moving forward. This formulation change seeks to improve the sustainability of supply while improving the user experience with its new multi-dose presentation.
“Lilly will continue to support patients already using the vial format, but the KwikPen device will be prioritized go-forward for its supply sustainability, ease-of-use, and multi-dose presentation.” – Ethan Pigott
As Eli Lilly & Co. navigates these price adjustments and regulatory pressures, it is clear that the company is attempting to balance profitability with patient access and public health needs. The impact of these changes will be watched very closely by interested parties all along the healthcare and pharmaceutical spectrum.
