Do drugmakers profit from price hikes? Eli Lilly's new report says 'no'

Listen
Text
  • Small
  • Medium
  • Large

Eli Lilly on Monday released the "2016 Lilly Integrated Summary Report," which details information on the company's drug pricing procedures.

Here are four things to know.

1. In 2016, the drugmaker's average discount rate for insurers and pharmacy benefit manufacturers was 50 percent.

2. Five years ago, the average discount was only 28 percent, according to Eli Lilly CEO David Ricks in a post on the company's blog.

3. While the Eli Lilly increased list prices by 14 percent last year, the average U.S. net price of its drugs — or the actual amount the company earns back from selling its medications — only increased 2.4 percent last year.

4. "What's confusing in healthcare is that the amount patients pay is mostly determined by insurance design, not by manufacturers' prices," Mr. Ricks said. "Among all kinds of health plans, patients shoulder about 5 percent of the total cost of hospital services, but nearly 20 percent of the total cost of prescription drugs."

"We don't believe anybody with insurance should have to pay list prices — not for services, not for medications," he continued.

To view the full report, click here.

More articles on supply chain:

Trump calls for drug cost measure in AHCA
FDA approves Allergan's dermal filler: 4 things to know
Study: Amgen cholesterol drug lowers risk of heart disease, stroke by 20%

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.