OBJECTIVES: The price of diabetes drugs has been a hot topic in the US for some time, with patient advocacy groups calling for action. Since the beginning of 2023, some of the provisions of the US Inflation Reduction Act (IRA) that aim to make these drugs more affordable have come into effect. This analysis explores the impact of the insulin-related provisions of the IRA on diabetes drug prices in the US.

METHODS: Using GlobalData POLI database, the overall US price trends of branded drugs used in diabetes were examined for the period between January 1, 2022, and January 1, 2024. Additionally, the price histories of several commonly used branded diabetes drugs – including 5 insulins and 5 non-insulins – were examined individually for the same period in POLI.

RESULTS: The price for all branded diabetes drugs was 0.69% higher year-on-year (y/y) in January 2022 and 1.52% higher y/y in January 2023. However, in January 2024, branded diabetes drug prices were 9.69% lower y/y. The 5 individual insulin products reviewed experienced price cuts ranging from 65% to78% y/y in January 2024. The prices of non-insulin diabetes drugs declined by 1-1.5% y/y in January 2024.

CONCLUSIONS: The IRA provisions for diabetes drugs appear to have been effective. Most of the diabetes price cuts comes from the three major insulin providers imposing price caps for its branded insulin products, suggesting that this is in direct response to the IRA provision imposing a monthly cap of $35 on for insulins. No similar price cap was imposed for non-insulin diabetes products, and POLI data indicates that consequently pharmaceutical companies have not undertaken drastic price cuts in line with the those for insulins and were merely reacting to IRA inflation rebate program.