LLY · 10-Q · 2026Q3 · Full report

Inflation Reduction Act Impact

ELI LILLY & Co · 2026-10-29 · Importance 32 · Surprise 24

The Inflation Reduction Act of 2022 requires HHS to effectively set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D. Government prices generally begin nine years after approval for New Drug Applications or thirteen years after licensure for Biologics License Applications. HHS selected Jardiance in August 2023, with prices effective in 2026, and selected Trulicity and Verzenio in January 2026, with prices effective in 2028. Lilly expects additional significant products to be selected in future years and says the law will meaningfully influence business strategy and could significantly affect consolidated results.

Key facts

• HHS selected Jardiance in August 2023 for government-set prices effective 2026; Jardiance is part of Lilly's collaboration with Boehringer Ingelheim. source
• HHS selected Trulicity and Verzenio in January 2026 for government-set prices effective 2028. source
• Lilly expects other significant products to be selected for government-set prices in future years and says the IRA will continue to meaningfully influence its business strategies and could significantly affect its business and consolidated results of operations. source
• The IRA requires HHS to effectively set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D, generally beginning nine years after FDA approval for NDA medicines or thirteen years for BLA medicines. source