Final answer:
The recent announcement of a 70% price cut on insulin by Lilly and Novo Nordisk benefits patients who require insulin for diabetes management. However, the pharmaceutical companies may face financial losses.
Step-by-step explanation:
The recent announcement that Lilly and Novo Nordisk are cutting the price of their insulin products by 70% is beneficial for patients who use insulin. This price reduction makes insulin more affordable and accessible for individuals with diabetes, who often rely on insulin to manage their condition. By lowering the cost of insulin, it can help improve medication adherence and overall health outcomes for those who require insulin treatment.
However, pharmaceutical companies like Lilly and Novo Nordisk may experience financial losses as a result of this price cut. Insulin is a major source of revenue for these companies, and reducing the price by such a significant percentage may impact their profits. Additionally, stockholders may also face some losses due to the potential decrease in company earnings.