How does insulin price gouging work? Shouldn’t competitors be interested in selling for $1 less until it gets close to actual cost?

Question

Given that its insulin and not some new pharmaceutical, I assume the method of making more is available to everyone?

In: Economics

Answer 1

You’re assuming insulin is insulin.

Unlike aspirin which is aspirin, the different insulins on the market are not all the same, and what works well for one person may not work well for another. (Chemically they are different).

There are widely available, *relatively* cheap insulins on the market, but they might be too fast/slow acting, require too frequent injections e.t.c. If the only insulin that works well for you is a relatively recent one still under patent, then you’re at the mercy of whatever the manufacturer wants to charge.