- within Consumer Protection, Insolvency/Bankruptcy/Re-Structuring and Technology topic(s)
The state of Indiana has filed suit against Indiana-based drug manufacturer Eli Lilly and Co. for conspiring with other manufacturers and pharmacy benefit managers (PBMs) to artificially inflate insulin prices by more than 1,000% over the past ten years. The lawsuit, along with a similar suit filed against other insulin manufacturers and PBMs, comes after Indiana State Attorney General Todd Rokita says he has spent the last two years trying to negotiate a resolution with Eli Lilly.
In its lawsuit, Indiana claims that the manufacturers and PBMs engaged in deceptive market practices to create abnormally high prices. The state is seeking injunctive relief that would require structural changes to ensure these companies lower costs for patients and support fair competition. Some accountability efforts have already pushed Eli Lilly and other insulin manufacturers to generally lower prices and limit monthly out-of-pocket costs to $35 for some patients. This lawsuit, which is likely to become part of ongoing multistate litigation, focuses on structural market changes and payment of penalties to affected patients.
In its past litigation, Indiana has obtained settlements of $66.5 million against Centene and almost $7 million against Mallinckrodt. Multistate litigation has resulted in a $573 million settlement against McKinsey & Co. and $39.1 million against Apotex over generic drug price-fixing. Indiana also participated in a multistate opioid settlement against the Sackler family and Purdue Pharma, as well as an eleventh multistate opioid deal, which totals about $1.1 billion in opioid funds for the state. Finally, Indiana took legal action against pharmaceutical companies for deceptive acts in conjunction with 600% price increases for EpiPens.
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