
Arkansas accuses Eli Lilly, Novo Nordisk, and Sanofi of colluding to drive up insulin prices
Arkansas brought Eli Lilly, Novo Nordisk, Sanofi, and three of the largest pharmacy benefit managers (PBMs) to court yesterday, accusing them of colluding to artificially drive up insulin prices.
The complaint, filed by Arkansas Attorney General Leslie Rutledge, alleges the defendants devised a scheme in which the Big Pharmas would “artificially and willingly raise their list prices” and then pay a part of those earnings back to the PBMs as rebates.
“These drug manufacturers and PBMs have inflated the price of insulin and other diabetes-related medication to line their own pockets,” Rutledge said in a statement.
The PBMs listed in the suit — CVS Caremark, Cigna’s Express Scripts, and UnitedHealth’s OptumRx — control 80% of the PBM market, which in February narrowly dodged a potential FTC study on whether PBMs hurt competition and drive up healthcare costs.
Research from GoodRx shows that the average retail price for insulin rose 54% from 2014 to 2019, in part due to a lack of competition. Rather than allowing competition to drive down prices, Rutledge accused PBMs of “intentionally driving up the price of the at-issue drugs.” After raising their prices, the pharma companies pay a portion of that back to PBMs for being included as a drug option to their clients, the lawsuit says.
High prices force some patients to go without treatment, and back in March the House passed a bill that would cap insulin prices at either $35 a month or 25% of an insurance plan’s negotiated price.
This marks the latest in a string of insulin lawsuits brought against pharma companies in state courts across the country. In 2017, a class action lawsuit was brought against the same three Big Pharmas for colluding to drive up insulin prices. More recently, in 2018 and 2021, Minnesota and Mississippi have respectively filed lawsuits against the pharma companies and PBMs for allegedly conspiring to raise prices.
According to the Arkansas lawsuit, for the last 15 years, the pharma companies “have in lockstep raised the prices of their respective diabetes drugs in an astounding manner, even though the cost to produce these drugs has decreased during that same time period.”
Eli Lilly, Novo Nordisk and Sanofi did not respond to requests for comment as of press time.