California is suing a group of pharmacy managers and insulin manufacturers, including pharmaceutical giant Eli Lilly, for using “unlawful, unfair and deceptive” means to drive up the cost of the diabetes drug, Attorney General Rob Bonta announced on Thursday.
The lawsuit, filed Thursday in Los Angeles Superior Court, also lists drug makers Novo Nordisk and Sanofi, as well as pharmacy benefit management companies CVS Caremark, Express Scripts and OptumRx, according to a press release from Bonta’s office.
The complaint alleges the insulin makers—which produce more than 90% of the global supply of insulin—as well as the pharmacy benefit management companies that control the drugs covered on health insurance plans, have “leveraged their market power” in an effort to overcharge diabetes patients.
Read more: PBMs: The Middlemen Who Drive up Drug Costs
Bonta accused those companies of violating the state’s Unfair Competition Law by “unacceptably and artificially” inflating insulin costs, making it so expensive that “many diabetics struggle to afford it” even if it’s covered by their health insurance.
The suit specifically accuses the drug makers of “aggressively” increasing the list price of insulin “in lockstep with each other,” hurting both diabetes patients and competition.
Featured News
Pork Industry Faces Legal Challenges as Antitrust Lawsuits Against Seaboard Foods Dismissed
Oct 2, 2024 by
CPI
CMA Strengthens Investigation with Advisory Panel of Veterinary Experts
Oct 2, 2024 by
CPI
US Merchants Sue Visa, Alleging Unfair Dominance in Debit Card Market
Oct 2, 2024 by
CPI
European Commission Appoints New Chief Competition Economist
Oct 2, 2024 by
CPI
EU Commission Requests Information from YouTube, Snapchat, TikTok on Algorithm Usage
Oct 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh