Novo Nordisk to cap insulin prices in Minnesota settlement

Novo Nordisk has 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, per a Reuters report.

The settlement filed in Newark, N.J. federal court comes after similar settlements with Eli Lilly and Sanofi last year. It requires Novo Nordisk to cap out-of-pocket costs for patients who pay with cash at $35 per monthly prescription, regardless of whether they have insurance, the report said.

Novo Nordisk also will 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, the report said, noting that Novo Nordisk denied wrongdoing in agreeing to the settlement, which lasts five years and requires court approval. 

[Related: Lilly cuts insulin prices, caps out-of-pocket costs]

Eli Lilly and Sanofi settled with Minnesota Attorney General Keith Ellison in February 2024 and July 2024, respectively. The report noted that 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."

The report also said that a Novo Nordisk spokesperson said the drugmaker was pleased to settle, and that the accord reflected its commitment to ensuring affordable access to insulin. 

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.

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