Eli Lilly CEO Criticizes PBM 'Rent-Seeking', Claims They Increased Insulin List Prices to $275: 'We Can Easily Bypass Them'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2025
0mins
Should l Buy LLY?
Source: Benzinga
Critique of Pharmacy Benefit Managers: Eli Lilly CEO Dave Ricks criticized pharmacy benefit managers (PBMs) for inflating insulin prices, claiming they profit from the difference between high list prices and low net prices, which harms uninsured patients.
Response to Price Inflation: Ricks noted that despite Lilly's efforts to introduce a low-cost insulin option, PBMs resisted these changes, prompting the company to create LillyDirect, a direct-to-consumer platform to bypass the PBM system.
Industry Support Against PBMs: Ricks' views align with those of industry disruptors like Mark Cuban, who also condemned PBMs for their role in escalating healthcare costs, indicating a growing challenge to the PBM business model.
Eli Lilly's Stock Performance: Following these developments, Eli Lilly's stock has shown positive performance, closing higher and reflecting a strong price trend over the year, despite a poor value ranking.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 886.630
Low
950.00
Averages
1192
High
1500
Current: 886.630
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Optimistic Industry Outlook: The strong performance in the health sector could attract more capital inflows, especially in the fields of innovative drugs and medical technologies, which are expected to provide momentum for future growth.
See More
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- Eli Lilly Acquisition: Eli Lilly announced its acquisition of Centessa Pharmaceuticals for up to $7.8 billion, focusing on new treatments for excessive daytime sleepiness, with peak sales for its key asset cleminorexton projected to exceed $3 billion, further solidifying Lilly's position in neuroscience.
- Novo Nordisk Competition: Novo Nordisk launched a subscription program to lower prices on Wegovy, aiming to reclaim market share from Eli Lilly, which leads in the GLP-1 category, highlighting the need for continuous innovation to maintain competitive advantage.
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See More
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- Clear Strategic Intent: Through this acquisition, Lilly aims to expand its product portfolio, particularly in the treatment of sleep disorders, to meet the growing market demand and drive future revenue growth.
- Positive Market Reaction: The market reacted positively to the acquisition news, with analysts generally believing that this move will enhance Lilly's innovation capabilities and competitive edge, especially in the rapidly evolving biopharmaceutical industry.
- Financial Impact Assessment: Although the acquisition amounts to $7.8 billion, Lilly anticipates achieving a return on investment in the coming years by integrating Centessa's R&D pipeline and market resources, thereby strengthening its overall financial health.
See More
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- Drug Development Potential: The orexin agonists being developed by Centessa are expected to treat narcolepsy and other neurological conditions associated with drowsiness, with a market potential estimated between $15 billion and $20 billion, significantly enhancing Lilly's product portfolio if successfully launched.
- Market Competition Landscape: Although Centessa's drug is not expected to receive FDA approval until 2028, its competitor Taked's similar drug is under review, indicating the intense competition in the market, prompting Lilly to accelerate its development efforts to maintain its lead.
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See More
