In a lawsuit filed in federal court in Trenton, New Jersey,
Minnesota Attorney General Lori Swanson took aim at the companies
after the list price for some insulin products more than tripled
since 2002.
The lawsuit alleged that companies fraudulently set artificially
high list price for their products while offering rebates to
pharmacy benefit managers (PBMs) in exchange for them covering the
drug on behalf of health plans.
PBMs negotiate drug prices for employers and health plans and
typically demand hefty discounts off list price from drugmakers in
exchange including the medicines on their preferred formularies.
The lawsuit contended that the list prices the drug companies set
were so far from those net prices that they did not accurately
approximate the true cost of insulin and were deceptive and
misleading.
The practice made insulin less affordable for diabetes patients in
high deductible health plans, the uninsured and senior citizens
covered by the government Medicare healthcare program, the suit
contended.
"Many people can’t afford the price hikes but can’t afford to stop
taking the medication either," Swanson said in a statement.
Danish drugmaker Novo Nordisk in a statement said it was "committed
to ethics and compliance in how we support patients." French
drugmaker Sanofi and Indianapolis-based Lilly in separate statements
said they believed the case was without merit.
The lawsuit comes amid continued concerns about rising U.S. drug
costs, particularly for insulin, a hormone needed by many people
with diabetes to control blood sugar levels.
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Swanson's lawsuit marked the first by a state to target pricing
practices of insulin manufacturers. The case was filed in New
Jersey, where a similar proposed class action lawsuit is pending.
Two other states, Washington and New Mexico, have been conducting
similar investigations, according to Novo Nordisk.
Novo's insulin products include Levemir, whose cost according to
Swanson has risen from $120.64 per vial in 2012 to $293.75 in 2018.
There have been similar price hikes for Lilly's HumaLog and Sanofi's
Lantus, the lawsuit said.
The lawsuit seeks an injunction preventing the companies from
disseminating misleading list prices for insulin products. It also
seeks damages for Minnesota residents who paid out-of-pocket for
their insulin.
But it comes a day after the U.S. government said it would propose
requiring drugmakers to include the list price of prescription
medicines in television commercials.
The case is State of Minnesota v. Sanofi-Aventis U.S. LLC, et al,
U.S. District Court, District of New Jersey, No. 18-cv-14999.
(Reporting by Nate Raymond in Boston; Editing by David Gregorio and
Bill Berkrot)
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