Walgreens, Kroger sue drugmakers, allege $2.8B in overcharges for diabetes med

Walgreens, Kroger and other retail pharmacy chains filed a lawsuit Dec. 2 against five drugmakers, alleging they participated in an antitrust scheme to dramatically hike the price of the diabetes drug Glumetza, according to Law360

The lawsuit is against brand-name drugmakers Bausch Health, Assertio, Salix and Santarus as well as generic drugmaker Lupin. Salix acquired Santarus for $2.6 billion in 2013. Bausch Health then acquired Salix for $14.5 billion in 2015.

According to the lawsuit, Assertio and Santarus entered into a pay-to-delay deal with Lupin in 2012 to ensure the generic drugmaker wouldn't release a cheaper version of the diabetes drug until 2016.

The deal allegedly allowed the brand-name drugmakers to hike prices, leading to $2.8 billion in overcharges. The drugmakers increased the price of Glumetza from $350 to more than $3,000 for a 30-day supply within a four-month period, the lawsuit says. The price hikes allegedly caused $175 million in overcharges every year. 

Other, smaller retail chains have previously sued the drugmakers for the price hikes, according to Law360

Read the full article here

More articles on pharmacy:
Top 5 pharmacy stories in November
Juno Therapeutics co-founder starting new drug company
Parents in Europe crowdsource $2.7M to buy world's most expensive drug for their toddler

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars