March 3 (UPI) — Not-for-profit generic drug maker Civica Rx announced Thursday its intent to produce its own insulin in order to dramatically reduce the cost of a widely used medicine that has seen its price soar in recent years.
Created by hospital systems and philanthropies in 2018 to produce affordable medicine, Civica Rx said it intends to produce and sell insulin for no more than $30 a vial and $55 for a box of five pen cartridges.
It said its insulin will be available for purchase as soon as early 2024 once the 140,000-square-foot manufacturing plant being built in Petersburg, Va., is completed.
“Diabetes is arguably America’s most expensive chronic condition, and it is heartbreaking that millions of people are rationing their care and putting their lives at risk because they can no longer afford insulin,” Dan Liljenquist, board chair of Civica and the founder of its non-profit model, said in a press release. “Through mission drive partnerships, we are choosing to create a new market reality where no one is forced to ration essential diabetes medications.”
More than 37 million people in the United States have diabetes, according to the U.S. Centers for Disease Control and Prevention, which said medical costs and lost work and wages for people diagnosed with diabetes total $327 billion a year.
About 8 million Americans use insulin, and the CDC said medical costs for people with diabetes are twice those who do not.
Despite the dependence on insulin and the fact it was discovered a little over 100 years ago by Canadian scientist Frederick Banting, its cost has steadily climbed.
According to GoodRx Health insulin users saw the average retail price of the drug climb by 54% between 2014 and 2019 though it did drop 5% amid the pandemic.
Advocates, members of congress and diabetics have derided the growing cost of insulin for years as they say it hurts the uninsured and the underinsured the most, some of whom have to choose between buying their life-saving insulin or covering living costs.
A 2020 study by the CDC supports this assertion, finding that two-thirds of people with diabetes or hypertension who use insulin skip or delay taking their medication due to financial concerns.
In his State of the Union address earlier this week, President Joe Biden said despite insulin costing about $10 a vial to produce drug companies charge up to 30 times that.
“Imagine what it’s like to look at your child who needs insulin and have no idea how you’re going to pay for it,” he said. “[L]et’s cap the cost of insulin at $35 a month so everyone can afford it.”
Civic said it will produce three insulin products, each of which will be made available in both vials and prefilled pens.
“More than 8 million Americans rely on insulin to live, but many can’t afford to take the amount they need because of the historically high and prohibitive cost of insulin,” said Marin VanTrieste, president and chief executive office of Civica Rx. “We know that to really solve for the insulin cost and access challenges so many Americans face, we need a process — from manufacturing to setting a transparent price — that ultimately lowers the cost of the drug for those living with diabetes.
“In that spirit, we will ensure patients know where Civica’s low-cost insulin is available,” VanTrieste said.