Utah nonprofit drugmaker says it can make 1/3 of America’s insulin — and sell it cheap

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Utah nonprofit drugmaker says it can make 1/3 of America’s insulin — and sell it cheap
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A Lehi-based nonprofit, Civica Rx, says its new insulin line could reshape drug pricing nationwide.

Social media companies have cracked down on Utah’s not-so-secret underground insulin trade, which is technically illegal, so now desperate patients and their families have begun to encode their pleas with spelling errors and alternate wording to evade bots, said Brandi Stewart, Katherine’s mother.

When a PBM lists a drug for insurance coverage, they get a “rebate” from the drug company, which the PBMs say they pass along to the insurance company to reduce premiums. But no one knows how much of that rebate gets passed on to the insurer, or whether the insurer actually uses it to reduce premiums — andIndustry watchdogs have worried that these rebates give PBMs an incentive not to include cheaper drugs on insurance plans, since those capture smaller rebates than expensive drugs do.

First of all, Civica is nonprofit and is not producing generics that will compete with its own, pricier brand-name products, as for-profit companies have. That means it has no incentive to downplay the generic in marketing.

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