February 8, 2023

There is no doubt that Insulin is one of the world’s greatest invention, but there is a secret the Insulin companies are hiding from you.

The original purpose of insulin was to save the lives of millions of people who had diabetes but giant corporations realized that when it comes to life and death people are willing to spend thousands of dollars this was a huge business opportunity so corporations shifted their focus from public well-being to making money today one vial costs around two to six

Dollars to produce however the average price for one vial of insulin is about 300 these corporations have a very straightforward policy if you want to live buy insulin at the price decided by them if you cannot afford it you do not deserve to live as harsh as it may sound this is the reality of today’s world insulin is a hormone found in most vertebraes that

Regulate the amount of blood sugar in the body it is normally produced in humans by the pancreas but in some cases the pancreas is unable to produce it in sufficient qualities or the body loses its ability to respond to the insulin the pancreas produces these biochemists were able to extract insulin from dogs and eventually from fetal calves refine it and apply it

To use in humans after several trials the drug was applied to patients in the united states and it saved millions of lives when inventor frederick banting discovered insulin he refused to put his name on the patent he felt it was unethical for a doctor to profit from a discovery that would save lives while banting’s co-inventor james collup and charles best could

Have sold the patent for millions of dollars they decided to sell their insulin patent to the university of toronto for just a dollar little did they know their greatest invention would turn into one of the most profitable businesses in the world one of the few outsiders who had shown interest in this research was the research director of eli lillian company the

Toronto team initially declined a joint venture or anything to do with patents partly because the team feared criticism for commercializing their discovery but now the team wanted to make insulin available to all who needed it and realized that the university had no facilities for mass production the university granted lilly the right to make it royalty-free and

Also offered them the ability to improve the original formulation and patent anything they created down the road this decision opened the door for generating huge profits by exploiting this life-saving drug eli lillian company organized large-scale production and introduced it into the us meanwhile a danish couple during their tour in the u.s came across several

Reports of people with diabetes being treated with insulin mary was interested in the treatment as she had type 2 diabetes they returned home to denmark from their trip with permission to produce insulin in the nordic countries the company they formed a century ago is now known as novo nordisk at present these two companies are two of the largest suppliers of

Insulin to the u.s market usually when a patent expires other manufacturers can release generic drugs to drive down prices however thanks to evergreening the opposite is true for insulin evergreening occurs when companies patent new inventions that in actuality are simply old drugs with slight modifications there have indeed been significant advancements in insulin

Medication however every little progression contributing to the advancements has been patented by these companies to prevent other manufacturers from developing insulin thanks to evergreening these three companies controlled 90 of the world’s supply of insulin despite all of it generic insulin has been developed by other manufacturers however they get paid by major

Producers to not produce and sell their insulin in the market this strategy is known as the pay for delay agreement this arrangement makes it legal for one manufacturer to pay another manufacturer to not become a competitor by entering the market leading to little to no affordable alternatives however there is one more factor responsible for driving up the prices

You’re not wrong when you blame manufacturers for the price increase having said that there’s one more force that is equally responsible for this problem i am talking about pharmacy benefit manager let me explain their role through a very simplified example if you made a drug for five dollars you may set the price at ten dollars to create a five dollar profit let’s

Say you want to expand and therefore you hire a middleman to place your product in new stores when you begin they charge you one dollar so to retain your profits you raise the price to 11 this cut from your profit is known as rebates thanks to middlemen you are making way more money than expected they become indispensable to your growth and they know it you sign

Contracts with them which ensures they will manage your drug and a clause that you won’t lower the price as it may impact their growth then you figure out that your middlemen have similar contracts with your competitors if your competitor pays your middleman more middlemen will prioritize their product as they are making more money through its sale so to kick your

Competitors out you start giving your middleman a bigger cut of your profits this results in a bidding war while people foot the bill you know that if people want to live they need to buy your drug so to make more money you keep on increasing the price of middlemen and ensure that people don’t have any other option other than to buy your product further worsening

The situation the best part it’s all legal pbms were created to ensure efficient delivery of drugs to patients but unfortunately that efficient delivery has turned out to be very expensive in july 2013 sanofi offered a two to four percent rebate for preferred placement on a formulary the same product in 2018 provided a 56 rebate this is one example but other

Manufacturers might be doing the same if the selling price of a vial is 200 more than 50 percent of it goes to a company that doesn’t even make it 45 of it goes to the manufacturer and 5 of the selling price is what it takes to make a vial the us health care system is deeply broken little to no steps are being taken to fix the problem and people in high places

Support the price increase the issue is specific to the united states the government lacks the control on drug prices and the complex insurance system leaves people under or uninsured here’s the graph which shows how much americans pay compared to other nations this shows us that an unregulated drug pricing system motivated by profit will always put money over

Lives what do you think will the situation ever get better let us know in the comments don’t forget to subscribe for more thought invoking content i

Transcribed from video
Why is Insulin so EXPENSIVE!? By Discovr