Insulin is more expensive now than ever. Although the cost of bio-manufacturing has decreased in the last 20 years*, the cost of insulin has increased more than 10X in the United States in this time. Most don't realize that the average out-of-pocket cost for insulin is $5,705 per year - 18.3% of the
($31,099) in the U.S. Insulin is life essential, yet entirely unaffordable to many patients. Patients are forced to ration their insulin, miss rent payments, and forego food in order to survive. This does not always work - patients are dying because of unaffordable insulin in the U.S.
This crisis of insulin affordability is one that can be well addressed by a countercyclical business that derives economic value from the fundamental human value created.
There is a significant human need - insulin is life-essential.
Customer relationships are life-long.
Of the 37 million diabetics in the U.S., over 7.4 million require insulin. Insulin affordability has reached such a crisis that price increases
There is a large group of initial users that are highly motivated to find new solutions.
Insulin is required daily. Different patients require different amounts, but a given person usually uses about the same amount from month to month.
Chronic diseases with consistent utilization needs are best served by a dedicated, continuous model.
The existing healthcare system has failed diabetic patients - insulin is more expensive in the United States than any other developed nation. In Canada, where the same insulin brands are sold as in the U.S., insulin prices are 70-90% less than in the U.S. Today there are independent Canadian pharmacies that sell insulin to diabetic patients in the United States. However, there are several barriers to patients. It is difficult to discern from the websites if companies are legitimate pharmacies or scams.
*Bio-manufacturing began as a high-cost process that was only economically viable in high-margin industries, such as pharmaceuticals. However, in recent years biomanufacturing costs have dropped enough to enable adoption in the food sector (see
Problem Space
