Novo Nordisk agrees to cap insulin price, give drug for free to neediest Minnesotans

Novo Nordisk agreed to cap insulin prices to settle a lawsuit in which Minnesota's attorney general accused the three largest insulin makers of charging astronomically high prices for the diabetes drug.

The settlement filed on Monday, Jan. 27 in the Newark, New Jersey federal court follows similar settlements last year with Eli Lilly and French drugmaker Sanofi.

It requires Novo Nordisk to cap out-of-pocket costs for patients who pay with cash at $35 per monthly prescription, regardless of whether the patient has insurance.

Novo Nordisk will also provide free insulin to the neediest Minnesotans, defined as those with annual household incomes at or below 400% of the federal poverty level, equivalent to $128,600 for a family of four.

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The Danish company denied wrongdoing in agreeing to the settlement, which lasts five years and requires court approval.

Eli Lilly and Sanofi settled with Minnesota Attorney General Keith Ellison in February 2024 and July 2024, respectively.

At a press conference, Ellison said the settlements reduce patients' insulin costs by more than 90%, ending many years when manufacturers prioritized "making billions and profits over saving lives."

A Novo Nordisk spokesperson said the drugmaker was pleased to settle, and that the accord reflected its commitment to ensuring affordable access to insulin. The company has U.S. offices in Plainsboro, New Jersey.

Ellison accused Novo Nordisk, Eli Lilly and Sanofi of inflating patients' out-of-pocket costs for insulin based on the wholesale acquisition cost, or list price, of the drug.

The drugmakers were accused of setting artificially high list prices, only to then negotiate lower prices by paying rebates to pharmacy benefit managers.

Insulin is vital to control blood sugar in patients with type 1 diabetes, and is used by some patients with the more common type 2 diabetes.

Minnesota's case began in 2018 under Ellison's predecessor, Lori Swanson.