Eli Lilly and Co has temporarily halted shipments of its Mounjaro diabetes and weight-loss drug to the UK ahead of a dramatic 170% price increase scheduled for September. The pharmaceutical giant told its two British wholesalers to stop taking orders for the medication as customers rushed to stockpile the drug before prices rise.
Supply Management Strategy
The company warned against "inappropriate stockpiling of medicines" as demand surged ahead of the planned price hike. The highest dose of Mounjaro will increase from £122 to £330, representing a substantial cost increase for patients and healthcare systems. Lilly stated the temporary halt was necessary to manage supply and ensure patients maintain access to the drug during the transition period.
The company has implemented allocations for pharmacy orders to maintain continuity of care for existing patients. UK orders are scheduled to resume at the start of September when the new pricing structure takes effect.
Policy-Driven Price Alignment
The price increase stems from White House pressure to align drug prices across developed countries. President Donald Trump signed an executive order in May implementing a "most favored nation" policy that links US drug prices to the lowest prices paid in other high-income countries.
Earlier this month, Lilly announced plans to raise prices in European countries to "align" them with costs paid "across developed countries." The company explained that for prices to be reduced in the US, "the amounts paid by governments and health systems need to increase in other developed markets like Europe."
Regulatory Agreement
Lilly has secured an agreement with the UK government to implement the Mounjaro price increase "while maintaining access" for people with diabetes. The drug was originally developed as a diabetes treatment but has also demonstrated efficacy for weight loss, making it a dual-indication therapy with significant market demand.
The pricing strategy reflects broader pharmaceutical industry dynamics as companies navigate international pricing pressures and regulatory policies aimed at controlling healthcare costs in different markets.
