Drug Price Trends for BASAGLAR

Average Pharmacy Cost for BASAGLAR

These are average pharmacy acquisition costs (net of discounts) from a US national survey

Drug Name	NDC	Price/Unit ($)	Unit	Date
BASAGLAR TEMPO PEN 100 UNIT/ML	00002-8214-05	20.95982	ML	2025-03-19
BASAGLAR 100 UNIT/ML KWIKPEN	00002-7715-59	20.93929	ML	2025-03-19
BASAGLAR TEMPO PEN 100 UNIT/ML	00002-8214-05	20.96382	ML	2025-02-19

Market Analysis and Price Projections for Basaglar

Introduction to Basaglar

Basaglar, a long-acting insulin glargine product, was introduced to the market in 2016 by Eli Lilly and Boehringer Ingelheim. Although it was not approved through the official biosimilar pathway, it is often considered a biosimilar to Sanofi's Lantus due to its high similarity to the reference product.

Market Impact of Basaglar

Competition and Market Share

The entry of Basaglar into the market had a significant impact on the pricing and market share of Lantus. Over a 10-year period, Basaglar managed to capture a substantial portion of the insulin glargine market, reducing Lantus's dominance. By 2020, Basaglar accounted for 39% to 41% of all net sales, while Lantus held 45% to 46%[1][3].

Price Dynamics

The introduction of Basaglar led to a substantial change in the pricing trajectory of insulin glargine products. Prior to Basaglar's approval, the net price per 100 IU of insulin glargine was increasing by $0.36 per quarter on average. However, after Basaglar's market entry, the net prices began to decrease by an average of $0.67 per quarter[1].

Net Price Reduction

The competition from Basaglar resulted in a significant reduction in the net price of Lantus. According to Visante estimates, the net price of Lantus decreased by almost 55% since Basaglar was introduced. This reduction led to a total savings of $3.5 billion in the health system by 2019[3].

Pricing and Cost Analysis

Current Pricing

As of recent data, the cost for Basaglar (100 units/mL) subcutaneous solution is around $353 for a supply of 15 milliliters for cash-paying customers. However, prices can vary depending on the pharmacy and any available discounts or coupons[2].

Out-of-Pocket Costs

Despite the lower list price of Basaglar compared to Lantus, studies have shown that Basaglar users often had higher out-of-pocket (OOP) costs. This disparity is attributed to the fact that Lantus users received more coupons, vouchers, and patient assistance program discounts[4][5].

Net Price vs. List Price

Interestingly, while Basaglar had a lower list price than Lantus, its net price (after rebates) was often higher. This complexity is due to the opaque nature of manufacturer rebates and the influence of pharmacy benefit managers (PBMs) on pricing[1][4].

Uptake and Utilization

Rapid Market Uptake

Basaglar experienced rapid uptake following its market entry, with its utilization rate growing by 87.4% in 2017 and 72.5% in 2018. By the fourth quarter of 2018, Basaglar had captured 14.3% of the long-acting insulin market share[4].

Formulary Penetration

The adoption of Basaglar on commercial plan formularies has steadily increased since its release. PBMs recognized the value of cost-effective alternative insulins and added Basaglar to more formularies, contributing to its market share growth[3].

Impact on Insulin Market

Reduction in Total Costs

The introduction of Basaglar led to a significant reduction in total net costs for insulin glargine products. From $5.6 billion in 2014, the total net cost decreased to $2.1 billion in 2019, highlighting the cost-saving impact of competition in the insulin market[3].

Future Prospects

Despite the initial success of Basaglar in reducing costs, the long-term effect of biosimilars on insulin pricing remains uncertain. Recent price cuts announced by major insulin manufacturers may not fully benefit all patients, especially those who are uninsured or have large deductibles[5].

Role of Pharmacy Benefit Managers (PBMs)

Formulary Placement and Pricing

PBMs play a crucial role in the pricing and uptake of Basaglar. They have used Basaglar to drive competition with Lantus, leading to lower net prices. However, PBMs also generate revenue through spread pricing, which can affect the OOP costs for patients[4].

Innovative Programs

PBMs are creating innovative programs to limit consumer OOP insulin costs and promote affordable access. These programs include clinical initiatives that improve care and patient outcomes, further enhancing the value of cost-effective insulins like Basaglar[3].

Key Takeaways

• Market Share and Competition: Basaglar significantly reduced Lantus's market dominance, capturing up to 41% of the insulin glargine market share.
• Price Reduction: The introduction of Basaglar led to a substantial decrease in the net prices of insulin glargine products.
• Out-of-Pocket Costs: Despite lower list prices, Basaglar users often had higher OOP costs compared to Lantus users due to differences in discounts and rebates.
• Total Cost Savings: The competition from Basaglar resulted in a $3.5 billion savings in the health system by 2019.
• Future Prospects: The long-term impact of biosimilars on insulin pricing is uncertain, with ongoing efforts to make insulin more affordable.

FAQs

Q: What is Basaglar, and how is it related to Lantus?

A: Basaglar is a long-acting insulin glargine product that is highly similar to Sanofi's Lantus, although it was approved via a new drug application rather than the biosimilar pathway.

Q: How did Basaglar affect the pricing of Lantus?

A: The introduction of Basaglar led to a significant decrease in the net price of Lantus, with a reduction of almost 55% since Basaglar's market entry.

Q: Why do Basaglar users often have higher out-of-pocket costs than Lantus users?

A: Basaglar users typically receive fewer discounts, coupons, and patient assistance program benefits compared to Lantus users, leading to higher OOP costs.

Q: What role do PBMs play in the pricing and uptake of Basaglar?

A: PBMs use Basaglar to drive competition with Lantus, leading to lower net prices. They also generate revenue through spread pricing, which can affect patient OOP costs.

Q: What are the future prospects for insulin pricing with the presence of biosimilars like Basaglar?

A: While biosimilars have reduced costs, the long-term impact is uncertain. Recent price cuts by manufacturers may not fully benefit all patients, especially those who are uninsured or have large deductibles.

Sources

1. Center for Biosimilars: "Study: Basaglar 'Biosimilar' Had Strong Downward Effect on Insulin Glargine Prices"
2. Drugs.com: "Basaglar Prices, Coupons, Copay Cards & Patient Assistance"
3. Legis.state.tx.us: "Insulins: Managing Costs With Increasing Manufacturer Prices"
4. AJMC: "The Price Paradox of Biosimilar-Like Long-Acting Insulin"
5. Managed Healthcare Executive: "Biosimilars Fail to Deliver on Insulin Pricing"