Almost One-Third of Producers Made No Profit on 2017 Insulin Sales, Nevada Finds
Twenty-eight percent of insulin manufacturers told Nevada’s state Department of Health and Human Services that they made no profit on insulin sales in 2017, according to the state’s first insulin price transparency report.
The report implements a 2017 state law requiring insulin drugmakers to detail their reasons for any hikes in wholesale prices above a threshold level of 2.5 percent over one year or 12.6 percent over two years and provide annual profits, marketing and manufacturing costs.
Of the drugs on the state’s 2017 essential diabetes drug list, 175 reported a price increase over the justification threshold. To justify the increases, manufacturers listed R&D costs, followed by changes in “marketplace dynamics,” rebates provided to entities like insurers and pharmacy benefit managers, increases in production costs and inflation.