The recent announcement from Eli Lilly regarding a significant price increase for Mounjaro, its type 2 diabetes medication, has raised eyebrows in the healthcare community. Effective from September, the price for a month’s supply of the highest dose of Mounjaro will surge from £122 to an alarming £330. This change is particularly relevant for those who rely on private prescriptions for Mounjaro, as it will not impact patients prescribed the medication through the British public healthcare system, known as the NHS, due to a separate pricing agreement.
Lilly's decision to adjust the pricing structure aligns with their strategy to ensure a consistent market presence across Europe. When Mounjaro was first launched in the UK, the company set the list price significantly lower than in its other three European markets. This move was intended to avoid delays in availability through the NHS and to ensure that patients could access the medicine promptly. Now, Lilly has indicated that they are aligning the list price more consistently across regions, reflecting broader trends in the pharmaceutical industry.
This price adjustment also sheds light on how the pharmaceutical industry is responding to changing policies in the United States, which remains its most lucrative market. Under the administration of President Donald Trump, there has been a push for lower domestic drug prices, which in turn has led to discussions about price increases in international markets. Recently, Eli Lilly's CEO, David Ricks, mentioned during an investor call that achieving parity between U.S. and European drug prices is desirable in the long run. However, he noted that European governments have been hesitant to agree to higher prices for medications.
It’s important to clarify that the list price for pharmaceuticals, such as Mounjaro, is set by the manufacturer before any potential rebates or discounts are applied. Lilly has expressed that they are actively collaborating with private healthcare providers in the UK, including online pharmacies, to ensure that patients can continue to access their medicines despite the price increase.
Mounjaro was launched in the UK in February 2022, while its competitor, Wegovy, developed by Novo Nordisk, has been available in the country since September 2023. This competition in the diabetes and weight-loss medication market highlights the evolving dynamics of pharmaceutical pricing and access in the UK and beyond.
This article was reported by Maggie Fick, a seasoned journalist based in Britain, who covers the European pharmaceuticals industry with a global perspective. In 2023, her in-depth coverage of Novo Nordisk’s production efforts for its new weight-loss drug contributed to the Health & Pharma team winning the Reuters Journalists of the Year award. Maggie has a diverse background in journalism, having reported from various locations, including Nairobi, Cairo, and Lagos, and started her career with the Associated Press in South Sudan.
