Delaware sues drugmakers, PBMs over insulin pricing

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Delaware Attorney General Kathy Jennings filed a lawsuit Jan. 14 against three drugmakers and three pharmacy benefit managers, alleging they conspired to inflate insulin prices by up to 1,000% over 15 years.

The complaint, filed in the state’s Court of Chancery, targets insulin manufacturers Eli Lilly, Novo Nordisk and Sanofi, along with pharmacy benefit managers CVS Caremark, Express Scripts and OptumRx. It accuses the companies of coordinating pricing strategies that resulted in excessive costs for Delaware patients dependent on insulin.

The lawsuit claims uninsured residents — who have nearly double the diabetes prevalence rate compared to the statewide average — have been particularly harmed by the alleged scheme.

The case joins a growing number of legal actions against drugmakers across the U.S. On Dec. 30, Philadelphia-based Jefferson Health filed a similar lawsuit in New Jersey federal court, alleging it was overcharged for insulin supplied to its hospitals and self-insured health plan. That complaint claims insulin list prices rose from $20 in the 1990s to more than $700 per vial, despite manufacturing costs as low as $2.

Indiana and Oregon also filed separate lawsuits in their respective state courts this month, citing deceptive pricing and market manipulation. The Oregon case seeks $900 million in damages, while Indiana Attorney General Todd Rokita alleged Eli Lilly used unfair practices that harmed nearly 700,000 residents with diabetes.

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