The South African government is investigating Novo Nordisk and Sanofi for alleged anti-competitive practices related to insulin pens. This scrutiny is part of a larger trend of price reduction in the insulin market, with significant legislative actions influencing drug pricing. Despite these issues, pharmaceutical companies continue to innovate in insulin treatments, while grappling with market challenges.
The South African government is currently investigating Novo Nordisk and Sanofi for alleged anti-competitive practices regarding human insulin pens, as reported by Bloomberg. The Competition Commission of South Africa is examining the companies’ device patents and proprietary designs to ascertain whether these practices are being utilized to restrict competition and prevent the entry of alternative suppliers into the market. This inquiry is coordinated with the local entities of both pharmaceutical companies.
In recent years, the insulin market has experienced significant challenges, largely driven by influential policy changes and pressures to reduce drug prices. Notable legislative measures include the Inflation Reduction Act and the Affordable Insulin Now Act, both aimed at considerably decreasing out-of-pocket expenses for American insulin users. Additionally, legislative pressure has contributed to price reductions for insulin in the United States.
This investigation by the Competition Commission follows significant actions against other companies; for instance, Google received a $30 million fine annually for five years related to harmful business practices affecting South African media, while Meta and X are under scrutiny for similar reasons. Earlier in March 2023, Eli Lilly announced a 70% reduction in insulin prices, implementing a monthly cap for out-of-pocket expenses, prompting Novo and Sanofi to enact their price reductions shortly thereafter.
In a subsequent development, Novo revealed plans to discontinue its long-acting insulin product Levemir by late 2024. Similarly, Eli Lilly announced marketing constraints leading to limited availability of two insulin products, Humalog and Lispro, while Sanofi also ceased production of its pre-mixed insulin product Insuman, primarily affecting the U.K. market shortly before announcing price cuts.
Despite these challenges, Novo and other drug manufacturers continue to pursue innovation in insulin treatments. Eli Lilly, for instance, is developing a once-weekly insulin injection that demonstrates a greater reduction in A1C levels compared to daily options. Meanwhile, Novo is working on its own once-weekly injectable insulin, insulin icodec, although its FDA application faced regulatory setbacks in July 2024 due to concerns related to type 1 diabetes applications.
The ongoing investigation into Novo Nordisk and Sanofi highlights critical issues within the insulin market, marked by recent policy changes aimed at lowering drug prices. As competitive pressures mount, these companies continue to face scrutiny regarding their business practices. Despite these challenges, both Novo and Eli Lilly are actively pursuing innovations in insulin treatments to meet growing market demands.
Original Source: www.biospace.com
