Pennsylvania sues pharmaceutical companies over insulin pricing scheme

Pennsylvania Attorney General Dave Sunday has filed a lawsuit against more than a dozen pharmaceutical companies and pharmacy benefit managers (PBMs), alleging a scheme to artificially inflate insulin prices by more than 1,000%.

The lawsuit, filed in the Commonwealth Court of Pennsylvania, names major manufacturers including Eli Lilly and Company, Novo Nordisk, Inc., and Sanofi-Aventis US LLC, alongside PBMs such as CVS Caremark, Express Scripts, and Optum RX. The state alleges that manufacturers dramatically raised prices starting in the mid-2000s, despite manufacturing costs being less than $2 per unit. The litigation claims companies engaged in quid pro quo deals, paying portions of profits to PBMs to ensure inclusion in drug plans.

Officials state the scheme has impacted approximately 1.3 million Pennsylvanians with diabetes and 3.5 million with prediabetes, forcing some residents to ration medication. Sunday is seeking restitution for affected patients and injunctive relief under state consumer protection laws.