Eli Lilly Raises Mounjaro Prices in the UK to Lower US Costs
Eli Lilly has announced a significant price increase for its weight-loss drug, Mounjaro, in the United Kingdom, aiming to reduce prices in the United States. The price for a month’s supply of the highest dose will rise from £122 ($165) to £330 ($447), marking a 170% increase. The changes will take effect in September 2023, following pressure from the Trump administration regarding disparities in drug pricing between the US and other countries.
While Eli Lilly’s move has raised prices for private consumers in the UK, the company confirmed that access to Mounjaro through the National Health Service (NHS) will remain unchanged. An estimated 220,000 individuals in the UK are expected to access the drug, which is also utilized by diabetics, through the public health service within the first three years of its introduction. Private suppliers will have the opportunity to negotiate discounts with Eli Lilly.
In response to the price hike, Juniper, a private weight-loss clinic in the UK, has published a blog post guiding Mounjaro patients on how to switch to Wegovy, a competing weight-loss injection produced by Danish pharmaceutical company Novo Nordisk.
Context of the Price Increase
Eli Lilly stated that the decision to adjust the UK price was made to align it more closely with the European average. A spokesperson emphasized that the original list price was set significantly lower to prevent delays in NHS availability at the time of Mounjaro’s launch. “With changes in the environment and new clinical evidence supporting the value of Mounjaro, we are now aligning the list price more consistently to ensure fair global contributions to the cost of innovation,” the spokesperson explained.
The US pharmaceutical industry has encountered increasing scrutiny from President Donald Trump, who has criticized the pricing disparities that favor foreign markets. Trump has claimed that countries like the UK benefit unfairly at the expense of American innovation. Eli Lilly reiterated its commitment to maintaining the United States as a leader in drug research and manufacturing.
In recent months, the company has focused on aligning prices across developed markets, particularly in Europe. “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,” Eli Lilly stated.
Political Pressure and Industry Response
In July 2023, Trump sent letters to 17 major pharmaceutical companies, including Eli Lilly, urging them to lower the prices of prescription drugs in the US. This initiative follows an executive order he signed in May that aimed to establish a “Most Favored Nation” rule, which would require US pharmaceutical companies to align their drug prices with those in Europe.
Experts have noted that while Trump’s political pressure may result in price increases or delays in other countries, it is unlikely to lead to immediate benefits for American consumers. Critics argue that the legal authority of the president to enforce such pricing changes is limited, but his actions reflect a determination to address the issue of high drug prices.
Trump has particularly highlighted the price differences in weight-loss medications, sharing an anecdote about a friend who expressed frustration over the cost disparity. “He said, ‘I just paid $88, and in New York I paid $1,300. What the hell is going on?’ So, I checked, and it’s the same box made in the same plant by the same company,” Trump recounted.
As Eli Lilly implements these changes, the implications for both UK and US consumers remain to be seen, as the company navigates the complexities of global pricing strategies in the pharmaceutical industry.
