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Patients to pay no more than $35 a month

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Eli Lilly ( LLY ), Sanofi previously settled overcharging claims

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Novo Nordisk denies wrongdoing, pledges affordable insulin

(Adds statement from Minnesota attorney general, use of

insulin, paragraphs 7, 11)

By Jonathan Stempel

Jan 27 (Reuters) - Novo Nordisk agreed to cap

insulin prices to settle a lawsuit in which Minnesota's attorney

general accused the three largest insulin makers of charging

astronomically high prices for the diabetes drug.

The settlement filed on Monday in the Newark, New Jersey

federal court follows similar settlements last year with Eli

Lilly ( LLY ) and French drugmaker Sanofi.

It requires Novo Nordisk to cap out-of-pocket costs for

patients who pay with cash at $35 per monthly prescription,

regardless of whether the patients have insurance.

Novo Nordisk also will provide free insulin to the neediest

Minnesotans, defined as those with annual household incomes at

or below 400% of the federal poverty level, equivalent to

$128,600 for a family of four.

The Danish company denied wrongdoing in agreeing to the

settlement, which lasts five years and requires court approval.

Eli Lilly ( LLY ) and Sanofi settled with Minnesota Attorney General

Keith Ellison in February 2024 and July 2024, respectively.

At a press conference, Ellison said the settlements

reduce patients' insulin costs by more than 90%, ending many

years when manufacturers prioritized "making billions and

profits over saving lives."

A Novo Nordisk spokesperson said the drugmaker was pleased

to settle, and that the accord reflected its commitment to

ensuring affordable access to insulin. The company has U.S.

offices in Plainsboro, New Jersey.

Ellison accused Novo Nordisk, Eli Lilly ( LLY ) and Sanofi of

inflating patients' out-of-pocket costs for insulin based on the

wholesale acquisition cost, or list price, of the drug.

The drugmakers were accused of setting artificially high

list prices, only to then negotiate lower prices by paying

rebates to pharmacy benefit managers.

Insulin is vital to control blood sugar in patients with

type 1 diabetes, and is used by some patients with the more

common type 2 diabetes.

Minnesota's case began in 2018 under Ellison's predecessor,

Lori Swanson.