Attorney General Gentner Drummond has initiated a lawsuit against major diabetic drug manufacturers and pharmacy benefit managers (PBM) for an alleged unfair and deceptive pricing scheme that has reportedly cost Americans billions of dollars. The suit, filed in Cleveland County District Court, accuses the defendants of violating the Oklahoma Consumer Protection Act (OCPA).
Drummond asserts that these manufacturers have substantially increased the prices of their diabetes drugs over the past 15 years, despite a decrease in production costs. He further claims that manufacturers and PBMs have closely coordinated to control drug prices and purchasing behavior.
“It is despicable that these companies preyed upon Oklahomans who were desperate for life-saving medication to bolster their profits,” Drummond said. “The outrageous profits these companies obtained through deceptive business practices need to be paid back through restitution or rescission.”
Named as defendants in the lawsuit are Eli Lilly and Company, Novo Nordisk Inc, Sanofi-Aventis U.S. LLC, Evernorth Health Inc., Express Scripts Inc., Express Scripts Administrators LLC, Esi Mail Pharmacy Service Inc., Express Scripts Pharmacy Inc., Medco Health Solutions Inc., CVS Health Corp., CVS Pharmacy Inc., Caremark Rx LLC, Caremarkpcs Health LLC, Caremark LLC, Unitedhealth Group Inc, Optumrx Inc. and Optuminsight Inc.
According to the filing, it costs less than $2 per vial for the named manufacturers to produce insulin today. However, drugs which sold for $20 in the late 1990s now range between $300 and $700. Over the last decade, the manufacturer defendants have reportedly increased their insulin prices by up to 1,000 percent.
“The current unlawfully inflated price stands in stark contrast to insulin’s origins: the discoverers sold the original patent for $1 to ensure that the medication would remain affordable,” states the lawsuit. “Today, insulin has become the poster child for skyrocketing and inflated drug prices.”
Oklahoma has one of the highest rates of diabetes in the nation, with 11 percent of the population – about 450,000 people – living with the disease. More than 1.6 million additional Oklahomans have prediabetes.
“As a direct result of the Insulin Pricing Scheme, one in four Oklahoma diabetics can no longer afford their diabetes medication and are forced to ration and skip doses,” according to the lawsuit. “This forced lack of adherence leads to substantial additional healthcare costs.”
Diabetes is a leading cause of blindness, kidney failure, and lower limb amputations in Oklahoma. It is also the seventh leading cause of death in the state despite the availability of effective treatments. The total estimated cost of diagnosed diabetes in Oklahoma is $6 billion annually.