INDIANAPOLIS – Eli Lilly and Company will drop the price of insulin by 70% and cap out-of-pocket insurance costs at $35.

“Lilly is taking these actions to make it easier to access Lilly insulin and help Americans who may have difficulty navigating a complex healthcare system that may keep them from getting affordable insulin,” the Indianapolis-based company said in a news release about the change.

As part of the changes, Lilly will cut the price of its non-branded insulin to $25 a vial effective May 1. The company said it would be the lowest list-price mealtime insulin available, costing less than the price of a Humalog vial in 1999.

“While the current healthcare system provides access to insulin for most people with diabetes, it still does not provide affordable insulin for everyone and that needs to change,” said David A. Ricks, Lilly’s Chair and CEO. “The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes.”

The company plans to cut the price of Humalog by 70% later this year; Lilly said it would happen in “quarter four 2023” without providing a specific date. On April 1, Lilly will introduce a new insulin injection, Rezvoglar, that will cost $92 for a five-pack of KwikPens.

Effective immediately, out-of-pocket costs will be capped at $35 at participating retail pharmacies for people with commercial insurance. Those who don’t have insurance can go to this website to download a savings card for insulin.

The pharmaceutical company plans to launch a national public awareness campaign about the changes “in the coming weeks.” The changes come as the drugmaker and other companies face pressure to lower the price of prescription drugs, including insulin.

In a Twitter post, President Joe Biden described Lilly’s announcement as “huge news.”

Huge news.

Last year, we capped insulin prices for seniors on Medicare, but there was more work to do. I called on Congress – and manufacturers – to lower insulin prices for everyone else.

Today, Eli Lilly is heeding my call. Others should follow.

President Joe Biden via Twitter