Drug companies sued over high insulin prices

Arkansas on Wednesday sued several drug manufacturers and pharmacy benefit managers over the cost of insulin for diabetes, accusing the companies of conspiring to inflate the price of the medication.

The lawsuit filed in state court accuses manufacturers Novo Nordisk, Sanofi and Eli Lilly of conspiring with pharmacy benefit managers Express Scripts, Caremark and Optum and violating Arkansas’ deceptive trade practices law with the high insulin prices.

A spokesman for Optum did not have an immediate comment on the lawsuit, and the other companies did not respond to requests for comment Wednesday.

The lawsuit accuses the companies of engaging in a scheme in which the drug makers rose their insulin prices and paid an undisclosed portion of that price back to the pharmacy benefit managers. Pharmacy benefit managers, or PBMs, run prescription drug coverage for employers, insurers, unions and other clients.

About 37 million Americans have diabetes, and an estimated 6 million to 7 million use insulin to keep their blood sugars under control. It’s an old drug, refined and improved over the years, that has seen relentless price increases.