The whole basis of diabetes is that the body is unable to produce insulin or the insulin present is ineffective in breaking down the sugar in the blood. As a result, you have type 1 diabetes or type 2 diabetes. In both categories, insulin is the key word in medications.
Having understood the important role of insulin, 3 researchers at the University of Toronto, who discovered insulin, decided that they did not want insulin to become the source of profits for pharma companies.
To prevent the misuse of insulin, they patented the molecule for $3 at the University. The year was 1921. Insulin vials were sold at a cheap rate of 75c a vial. Today in 2016, insulin medications cost more than 300 times the price!
So, what happened for this dramatic change? Well, for one, the patent expired in 1996. That led to 3 companies, Novo Nordisk, Sanofi, and Eli Lilly to bring out innovative twists to insulin. In short, faster-acting molecules, more efficient delivery of insulin, and other research-derived improvements to the drug.
For each new improvement or fine-tuning of insulin, the price was increased accordingly. The thing is to the ordinary American with a reliable insurance, the price is subsidized. But, if you are without insurance or you lose your job, then the story is quite different.
Today, a vial of insulin can cost anywhere between $140 to $250. And patients require more than 1 vial a month. Imagine spending $1000 just on medicines for a month. Prices are steep and there are many who are questioning the necessity of such price hikes.
Pharma companies on their part are insisting that they do not get extensive profits from insulin medications due to the numerous rebates and discounts provided to insurance companies through middlemen or pharmacy benefit managers.
Still, these very same middlemen have questioned the real benefits of these “supposed improvements” to insulin to most people. In the end, not everyone benefits from these subtle improvements in the insulin molecule.
The fact that insulin prices have skyrocketed is not just due to the research improvements but also the fact that pharma companies are quick to create patents for the smallest change in the insulin drug. The price is increased following the patent.
With all the economic benefits from the insulin molecule, the one who is losing out in this battle is the consumer. The average diabetic is paying the insurance more for an advanced insulin drug or if there is no insurance, the list price is certainly steep.
The pharmaceutical company-pharmacy benefit manager-insurance nexus is creating a situation where treating diabetes is becoming an expensive affair for the average diabetic. This is leading many diabetics to stretch their medications or hoard on them to avoid the pressure on their wallets.
In 1921 when insulin was discovered, the researchers were humbled by the thought that this was a molecule that could turn around the fate of diabetics in the world. Keeping that noble thought they patented the molecule to prevent the idea of making monetary gains. Little did they realize that the principles on which they patented the molecule will be twisted and utilized in the same way to make gains amounting to billions of dollars in today’s world.
