Two weeks after Trump sent letters to big pharma companies demanding they lower prescription drug prices in the US, Eli Lilly has stepped forward to say it will increase its prices in Europe.
A statement from Lilly says: “Lilly supports the administration’s goal of keeping the United States the world’s leading destination for biopharmaceutical research and manufacturing, and the objective of more fairly sharing the costs of breakthrough medical research across developed countries. This rebalancing may be difficult, but it means the prices for medicines paid by governments and health systems need to increase in other developed markets like Europe in order to make them lower in the US.”
The UK is one of the countries that will be affected. Media reports claim that the cost of Mounjaro is increasing by 170% for those who pay privately. The UK was one of the first countries where Mounjaro was launched and has benefited from a low list price.
The Lilly statement adds: “In recent months, we have intensified efforts to align prices across developed countries, especially in Europe. We are continuing to work with certain governments and expect to make any necessary pricing adjustments by September 1, while providing continued access for patients. This includes an agreement with the UK government to increase the list price of Mounjaro, while maintaining access for NHS patients.”
Trump’s letter to pharma companies outlined steps that companies must take to lower prices, including stipulating that companies cannot offer developed nations better prices for new medicines than those charged in the US. The Trump administration also wants to offer “an avenue to cut out the middlemen” that will allow companies to sell directly to patients. This is something that the Pharmaceutical Research and Manufacturers of America (PhRMA) has previously emphasized as being important.
“Middlemen who neither invent nor administer medicines to patients now collect more in rebates, discounts, and fees than the total price of drugs in many other countries,” says an article from PhRMA. “Consider how pharmacy benefit managers collect $257, on average, on the cost of a 30-day prescription of one leading diabetes treatment, according to a recent analysis. That same prescription costs less than $50 in the United Kingdom, $38 in Japan, and $35 in France.
“No other developed country tolerates middlemen collecting so much money from the health care system while providing so little value to patients. PBMs alone receive 42 cents of every dollar spent on medicines in the commercial market, according to Nephron Research.”
Lilly’s statement also points to structural issues in the US healthcare system. “The U.S. system is complex and opaque, with multiple cross subsidies, abuse of government programs like 340B, and insurance cost-sharing burdens for patients. This makes the U.S. different from other developed nations, which have a less complicated system and low, or no out-of-pocket costs for patients.”
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