Wednesday , January 17 2018
Home / Letter From The Editor / Dec. 16, 2017

Dec. 16, 2017

My good friend David Kliff always seems to hit the nail on the head when it comes to evaluating diabetes companies and the battles for insurance coverage and pricing. He often discusses the idea that insulin is a commodity, and formulary choices are not based on advertised prices, but on how high are the rebates paid back to the PBM’s. These rebates are often as much as 80%, meaning the manufacturer would rebate $400 on a medication that is priced at $500 in the retail setting.

This is why you sometimes don’t see a new generic available on formulary. A good example of this occurred when Lilly got approval for Basaglar, their biosimilar insulin meant to replace Sanofi’s Lantus. While most of you thought everyone would use Basaglar, this is not necessarily true. In fact, Sanofi would quietly float the idea that Basglar was not as good, while Lilly touted that they were the same.

Now the tables will be turned as Sanofi just got FDA approval for Admelog, their copycat version of Humalog.

It will be interesting to see if either company changes their tune about the value of Biosimilars now that they both have one.

 

 

*****************************

We can make a difference!

*****************************

Dave Joffe

Editor-in-chief