Drugmaker Eli Lilly & Co (LLY) said on Tuesday it has reduced the out-of-pocket cost for insulin to $35 per month to help diabetes patients across the U.S., as the coronavirus crisis is putting many people under financial strain.
The new co-pay scheme effective from today covers most of Lilly’s insulins, including all Humalog injections. The scheme will be available for diabetes patients with commercial insurance as well as those without insurance. People with minimal income, or no income at all may be eligible for further discounts or free insulin that has been donated by Lilly to non-profit organizations.
“Enabling a $35-per-month insulin co-pay regardless of employment status will help many Americans in this difficult time,” said CEOs Aaron Kowalski and Thom Scher of non-profit organization JDRF-Beyond Type 1 Alliance. “
However, patients with government insurance such as Medicaid, Medicare, Medicare Part D or any State Patient or Pharmaceutical Assistance Program are not eligible for the scheme, Lilly said.
Lilly reiterated that it did not currently anticipate insulin shortages of any forms during the COVID-19 crisis. All forms of Lilly insulin are available in U.S. pharmacies, and pharmacies that don’t stock certain medicines can order them from wholesalers, with delivery in 1-2 days, the drugmaker said.
Five-star analyst Terence Flynn at Goldman Sachs last month reiterated the drugmaker’s Buy rating with a $168 price target. According to Flynn, Lilly’s strong growth profile coupled with its “significant” margin expansion, limited exposure to near-term loss of exclusivities, a favorable U.S. channel mix and a 2.2% dividend yield positions its shares for continued outperformance this year.
Overall, the analyst community is not as bullish as Flynn. 3 Buys and 2 Holds add up to a Moderate Buy consensus rating. The $153.20 average price target implies upside potential of 7.5% in the coming 12 months. (See Lilly’s stock analysis on TipRanks)
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