Keller Rohrback L.L.P. has filed law suits against the country’s largest managers of pharmacy benefit (PBMs) and NASDAQ Stock Express Scripts Holding Company (NASDAQ:ESRX), OptumRx and CVS Health Corp (NYSE:CVS) as well as the three leading manufacturers of insulin Novo Nordisk A/S (ADR) (NYSE:NVO), Sanofi-Aventis and Eli Lilly and Co (NYSE:LLY). Sanofi-Aventis, Eli Lilly and Novo Nordisk are the producers of the commonly-prescribed Novolog, Humalog, Levemir, Apidra and Lantus.
According to the suit, which was filed at the New Jersey federal district court, PBMs who are middlemen of the insurance industry tasked with negotiating prices of drugs in addition to developing formularies which determine the amount of money paid by patients conspired with the manufacturers of insulin to inflate insulin prices for their own benefit. This according to the complaint had a direct negative impact on the patients and other buyers of insulin financially in addition to risking the lives of millions of diabetes patients.
The Plaintiffs in the case are people who buy insulin for their children or themselves as well as the Type 1 Diabetes Defense Foundation, an NGO dedicated to promoting and protecting the social welfare and legal rights of people who depend on insulin for survival. These Plaintiffs collectively raise an element emanating from their own individual experiences as well as the foundation’s organizational purpose. Their case is primarily focused on the responsible parties, the problems and the breadth of damage inflicted on insulin buyers. Their complaint therefore includes parties not included or claims that haven’t been included on two or recently filed suits.
High prices of insulin inflict emotional, physical and financial stress on diabetes patients as well as their families. Although insulin manufacturers contribute to the problem, they don’t act in unison. They collude with PBMs to increase the prices of insulin which consumers are directed to pay by PBMs. Through these dubious and underhand means, they reap huge profits from patients who depend on insulin for survival.
According to the Insulin Pricing Scheme, the Plaintiffs’ complaint elaborates how PBMs set preferential access to their formularies in exchange to a portion of the profits and other fees paid by manufacturers of drugs.