The "authorized generic" of Humalog 100 will sell for $137.35 per vial, 50 percent lower than the list price for Humalog. An authorized generic is identical to the brand-name drug and made in the same facilities, but just has a different label, The New York Times reported Monday.
The new product will be called Insulin Lispro and will become available as soon as possible, according to the company.
The move comes as drug makers face widespread criticism about the rising costs of prescription drugs.
"This announcement is a great step forward to make insulin more affordable," said Derek Rapp, the chief executive of JDRF, a diabetes advocacy group that receives funding from Eli Lilly, the Times reported.
Rapp called on "all other insulin manufacturers to follow Eli Lilly in finding ways to bring down the price of this lifesaving drug."