Eli Lilly to Raise Diabetes Drug Price in UK Amid Trump Pressure

Eli Lilly is raising the list price of diabetes drug Mounjaro in the UK, starting September, in response to pressure from President Trump to align American drug costs with other nations. The price increase comes as Trump threatens 200% tariffs on drug makers if they don't lower medication prices in the US or raise them abroad. The new list price will range from £133 to £330 per month.

Eli Lilly has announced a significant price increase for its diabetes drug Mounjaro in the UK, effective September 1. The move comes under pressure from President Trump to align American drug costs with those in other developed countries. The new list price will range from £133 to £330 per month, nearly doubling the previous rates [1].

Mounjaro, also known as tirzepatide, is a popular weight-loss injection that has been effective in managing obesity and type 2 diabetes. The price hike will affect more than one million British patients, although the National Health Service (NHS) will not be directly impacted. The increase is part of a broader initiative by the Trump administration to lower US drug prices and ensure that American patients do not pay more than those in other developed nations [2].

Eli Lilly has cited the need to address pricing inconsistencies and ensure fair global contributions to the cost of innovation as reasons for the price increase. The company has stated that it will continue to work with the NHS to maintain patient access and is not setting the prices for private healthcare providers [1].

The price increase has sparked concerns among healthcare professionals and patients, with some predicting a shift towards alternative medications like Wegovy (semaglutide). Kevin Joshua, the clinical lead at Juniper, an online pharmacy, has warned that the price hike could force patients to make difficult choices between their finances and their health [1].

Eli Lilly's stock has shown mixed reactions to the news. While the company's stock has climbed into the green in recent days, it remains well below key moving averages, indicating ongoing market volatility. The stock has a poor IBD Digital Relative Strength Rating of 12, reflecting its performance over the past 12 months [2].

The price increase comes as the Trump administration continues to push for its Most Favored Nation (MFN) drug pricing plan, which aims to align US prices with those paid overseas. Eli Lilly supports the administration's goal of making the US a leading destination for biopharmaceutical research and manufacturing, but acknowledges that rebalancing prices may be difficult [2].

The announcement highlights the complex dynamics of global drug pricing and the challenges faced by pharmaceutical companies in navigating international market pressures. As the debate around drug pricing continues, investors and financial professionals should closely monitor the impact of such changes on the pharmaceutical industry and the broader healthcare sector.

References:
[1] https://www.thetimes.com/uk/healthcare/article/eli-lilly-mounjaro-price-increase-uk-52nv6sl6c
[2] https://www.investors.com/news/technology/eli-lilly-uk-list-price-mounjaro-most-favored-nation-drug-prices/?mod=newsviewer_click&refcode=aflMarketWatch&src=A00619