The world's biggest makers of insulin are likely to make more money, not less, even after slashing prices by as much as 75% due to US government pressure.
That's because Novo Nordisk announced price cuts to their insulin products on Tuesday, less than two weeks after rival Eli Lilly & Co. announced its own price cuts. However, both companies could avoid paying out multimillion-dollar rebates to the government's Medicaid health-care program.
A 2021 law incentivized the companies to lower prices by removing a cap on the rebate payment, a change that kicks in next year. Federal and state governments claim the rebates from drugmakers to help offset the cost of covering prescription drugs under government programs.
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