The litigation against insulin manufacturers and pharmacy benefit managers is growing rapidly. This model of litigation has emerged as an effective tool for local governments to challenge the complex rebate system. States like Arizona and Utah have sued manufacturers Eli Lilly & Co., Novo Nordisk A/S, and Sanofi SA, as well as major pharmacy benefit managers CVS Caremark, Express Scripts, and OptumRX. The complaints revolve around illegal pricing practices and artificially inflated insulin prices. This litigation has opened the door for more states and municipalities to seek legal action against the manufacturer and distributor of such products.
Regarding the recent influx of litigation, drug pricing analysts and attorneys believe that this approach will be more effective than recent legislative attempts to address the issue of drug costs. They see litigation as a more promising way to demand genuine change in drug pricing.
The lawsuits by state attorneys general and county officials target insulin manufacturers and PBMs for unfair and deceptive business practices. They argue that inflated list prices result in higher manufacturer rebates to PBMs and ultimately higher costs for consumers.
Despite resistance from the drug companies, attorneys believe that the discovery process will unveil internal business documents and force companies to take action on high drug costs. Moreover, despite industry resistance and legislation, prominent legal experts and drug pricing analysts believe that the ongoing litigation is a promising strategy to achieve change in drug pricing models.