Novo Nordisk tests a new business model to improve insulin access in Kenya

As part of an official Danish state visit to Kenya, global insulin giant Novo Nordisk (NOV: N) last week officially launched a program to make insulin and diabetes care more accessible to poor populations.

In Kenya, 250,000 people are in need of insulin out of which 80,000 are people with an annual income between $1,500 and $3,000, the company noted. To make insulin more affordable and accessible to this group, Novo Nordisk has, in partnership with local organisations and faith-based hospitals and clinics, developed a new business model that includes a streamlined supply chain and treatment centers that are closer to the patients’ homes.

The project has reduced price mark-ups in the supply chain to the extent that the insulin can be obtained at $0.20 daily, which is equivalent to a third of the previous price on the private market.