LOS ANGELES (Legal Newsline) — Eli Lilly hopes to litigate claims made by California Attorney General Rob Bonta over insulin prices in federal court.
The drug-maker and other defendants removed the case to Los Angeles federal court in March. Bonta had filed suit against Eli Lilly and several other insulin manufacturers and pharmacy benefit managers alleging artificial inflation of insulin in January in Los Angeles Superior Court.
Other defendants include Novo Norsisk Inc., CVS Health Corp. and Express Scripts, and the suit alleges unjust enrichment and other claims.
The plaintiffs claim that the defendants' excessive price of insulin has affected millions of Californians who suffer from diabetes. The plaintiff alleges that the defendants aggressively raise the list price of insulin in lockstep with each other to artificial levels.
The plaintiff further alleges that the cost of manufacturing insulin is less than $10 per month and that the defendants "obtain significant secret rebates" that are a percentage of the inflated insulin list price in exchange for "favorable placement" on the pharmacy benefit managers' "standard formularies," which incentivizes manufacturers to raise their list prices.
The plaintiff claims the defendants' actions have disproportionately harmed low-income communities, who have higher rates of diabetes and uninsured and whose residents have to choose between their insulin medication or housing and food. The plaintiff also claims the defendants' actions constitute unfair and deceptive practices.
The plaintiff seeks monetary relief, interest and all other just relief. It is represented by Rob Bonta, Attorney General of California, Renuka George, Senior Assistant Attorney General, and Darcie Tilly, Deputy Attorney General.