LLY · 10-Q · 2026Q2 · Full report

Inflation Reduction Act Impact

ELI LILLY & Co · 2026-08-05 · Importance 40 · Surprise 42 · In source text

The Inflation Reduction Act of 2022 requires HHS to set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D. HHS selected Jardiance in August 2023 for prices effective in 2026, and selected Trulicity and Verzenio in January 2026 for prices effective in 2028. Lilly expects additional significant products to be selected in future years, potentially materially affecting its business strategy and consolidated results of operations.

Key facts

• HHS selected Jardiance in August 2023 (effective 2026) and selected Trulicity and Verzenio in January 2026 (to be effective 2028) as medicines subject to government-set prices under the IRA. source
• The company expects other significant products will be selected under the IRA in future years given its product portfolio. source
• The Inflation Reduction Act requires HHS to effectively set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D generally beginning at nine years (NDAs) or thirteen years (BLAs) following FDA approval or licensure for the molecule. source

Impact estimates