Why Is Insulin So Expensive In The U.S.?

Mar 19, 2015
Originally published on April 1, 2015 7:57 pm

Dr. Jeremy Greene sees a lot of patients with diabetes that's out of control.

In fact, he says, sometimes their blood sugar is "so high that you can't even record the number on their glucometer."

Greene, a professor of medicine and history of medicine at Johns Hopkins University, started asking patients at his clinic in Baltimore why they had so much trouble keeping their blood sugar stable. He was shocked by their answer: the high cost of insulin.

Greene decided to call some local pharmacies, to ask about low-cost options. He was told no such options existed.

"Only then did I realize there is no such thing as generic insulin in the United States in the year 2015," he says.

Greene wondered why that was the case. Why was a medicine more than 90 years old so expensive? He started looking into the history of insulin, and has published a paper about his findings in this week's issue of the New England Journal of Medicine.

The story of insulin, it turns out, starts back in the late 1800s. That's when scientists discovered a link between diabetes and damaged cells in the pancreas — cells that produce insulin.

In the early 1920s, researchers in Toronto extracted insulin from cattle pancreases and gave it to people who had diabetes, as part of a clinical trial. The first patient was a 14-year-old boy, who made a dramatic recovery. Most others recovered as well. Soon, insulin from pigs and cattle was being produced and sold on a massive scale around the world.

But for some, the early forms of the medicine weren't ideal. Many people required multiple injections every day, and some developed minor allergic reactions.

Over the next few decades, scientists figured out how to produce higher-quality insulin, Greene says. They made the drug purer, so recipients had fewer bad reactions. They also made the substance able to last longer in the bloodstream, which led to more stable blood sugar levels and less frequent injections.

"All of these innovations helped to make insulin a little bit safer, a little bit more effective," Greene says.

Then, in the 1970s, scientists developed a new technique they could use for insulin production, called recombinant DNA technology. It involves putting the human gene for insulin into bacteria, which then produce large quantities of the hormone.

Then, a funny thing happened, Greene says: "The older [animal] insulin, rather than remaining around on the market as a cheaper, older alternative, disappeared from the market."

Greene says there's no one reason that companies stopped producing the older animal versions, but they clearly felt it would not be profitable.

Dr. Kevin Riggs, a professor of medicine at Johns Hopkins and co-author of the new insulin study, says the newer, recombinant version of insulin may have had some advantages in terms of convenience and fewer side effects. But there was probably something else at work — doctors being influenced by marketing.

"A lot of time we get caught up in some of the hype," Riggs says. "When a new medicine comes out and it has theoretical advantages, we buy into that and think newer is better."

The company that made the new form of insulin, called Humulin, launched a large marketing effort aimed at doctors and patients shortly after its release.

But newer drugs aren't always better, says Dr. Adriane Fugh-Berman, a professor of medicine and pharmacology at Georgetown University. That's partly because drug companies don't have to prove that a new drug is better than what is already on the market — they just have to prove that it's not worse.

"In government-funded studies that have compared older drugs to newer drugs, often older drugs come out looking better or equal to newer drugs," Fugh-Berman says.

For example, some patients have found that animal-derived forms of insulin work better for them, she says. They cause less variability in blood sugar, and fewer episodes of hypoglycemia.

And while those older kinds of insulin are not available in the U.S., they are available elsewhere.

"In Canada, there actually is still an animal-derived insulin on the market, and that was really due to the efforts of consumer advocates," Fugh-Berman says.

As the older versions have vanished in the U.S., newer versions have stayed expensive. The drug can cost up to $400 a month. Because of that high cost, many of the estimated 29 million people living with diabetes in the U.S. can't afford it.

Some industry analysts expect insulin costs to fall in the future. That's because the most recent insulin patents have expired, paving the way to more competition. The FDA has also decided to allow biosimilar versions of insulin onto the market. These are substances that act in a similar way to existing forms, but are not necessarily identical.

"But there's concern that the cost savings [with biosimilar insulin] will be nowhere near as robust as they have been with [other types of] generic drugs," Greene says.

"Rather than reducing costs by 80 percent, as many generics have done, they might reduce costs by 40 percent," Riggs says.

Greene says the point of their recent study about insulin costs isn't to simply blame the drug industry. "We do not believe that there is a conspiracy to keep insulin expensive," he says.

Rather, he says, incremental improvements in the drug — and the disappearance of older versions, which aren't as profitable — are more likely explanations.

Greene says innovations in insulin over the past 90 years have been significant. But, he says, it's important to ask this question: "Do these innovations merit the loss of affordable insulin?"

For patients at his clinic who can't afford insulin, Greene says, the answer is clear. A more affordable version is needed.


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Transcript

RENEE MONTAGNE, HOST:

For all the talk of an epidemic of diabetes, one thing rarely discussed is that insulin is out of reach for many Americans. Back in the 1920s, scientists discovered that insulin - that's the hormone that regulates blood sugar - insulin could control a disease that had been a death sentence. And one doctor in Maryland wondered why, 90 years later, so many people still can't afford it. NPR's Anders Kelto has the story.

ANDERS KELTO, BYLINE: Dr. Jeremy Greene sees a lot of patients with diabetes.

JEREMY GREENE: Diabetes that is really just out of control, with their glucoses very, very high - sometimes so high that you can't even record the number on the glucometer.

KELTO: And the reason they can't control their blood sugar, they tell him, is that insulin is too expensive. Greene, who teaches medicine and history of medicine at Johns Hopkins, called up some pharmacies in Baltimore. He asked them about low-cost versions of insulin...

GREENE: ...And only then realized there was no such thing as generic insulin in the United States in the year 2015.

KELTO: He wanted to know why that was, so he dug into the history of insulin and has now publishes findings in the New England Journal of Medicine. What he found is a long line of small improvements to insulin over many years. The first insulin was extracted from cows and pigs. Purification techniques improved, then it was made to last longer in the bloodstream.

GREENE: And all of these innovations helped to make insulin a little bit safer, helped to make it a little bit more effective...

KELTO: ...And probably kept prices up. Then scientists figured out how to make human insulin by inserting the gene into bacteria. And then, Greene says, a funny thing happened.

GREENE: The older insulins, rather than remaining around on the market as cheaper, older alternatives to this newer and slightly better insulin, disappear from the market.

KELTO: Greene says there's no one reason why they disappeared, but, clearly, companies didn't think they would be profitable. Green's co-author on the new paper, Dr. Kevin Riggs from Johns Hopkins, says their disappearance probably had to do with doctors being influenced by marketing.

KEVIN RIGGS: A lot of times, we get caught up in some of the hype. When a new medicine comes out and it has theoretical advantages, you know, we buy into that. We think that newer is better.

KELTO: But newer isn't always better, says Dr. Adriane Fugh-Berman. She's a professor of medicine and pharmacology at Georgetown University.

ADRIANE FUGH-BERMAN: In studies that have compared older drugs to newer drugs, often, older drugs actually come out looking better or equal to newer drugs.

KELTO: For example, she says, look at insulin.

FUGH-BERMAN: Some patients have found that animal-derived insulins work better for them - that they cause less variability in blood sugar, for example - maybe less episodes of hypoglycemia.

KELTO: Those older versions of insulin aren't available in the U.S. anymore, but they are available in other countries.

FUGH-BERMAN: In Canada, there actually is still an animal-derived insulin on the market, and that was really due to the efforts of consumer advocates.

KELTO: As older forms of insulin have vanished in the U.S., newer forms have remained expensive. The drug now costs up to $400 a month. And because of that high cost, many of the estimated 29 million Americans with diabetes can't afford it. Jeremy Green says it's not fair to blame industry for all of this.

GREENE: We don't believe that there is a conspiracy to keep insulin expensive.

KELTO: But he points out a problem. There's a huge demand for low-cost insulin, and yet there's no supply. And he says while innovations and insulin over the past 90 years have really been significant, it's important to ask this question.

GREENE: Do these innovations merit the loss of affordable insulin?

KELTO: For patients at his clinic who can't afford insulin, Greene says, the answer is clear. A less expensive option is needed. Anders Kelto, NPR News, Washington. Transcript provided by NPR, Copyright NPR.