Texas Attorney General Ken Paxton has filed a lawsuit against the largest insulin manufacturers and pharmacy benefit managers, alleging the companies conspired to raise insulin prices by up to 1,000%.
The suit against Eli Lilly, CVS Pharmacy, Express Scripts, Novo Nordisk, Sanofi-Aventis, Evernorth Health, CVS Caremark, UnitedHealth Group, OptumRx and others alleges the drugmakers were not transparent in their insulin pricing and hold a monopoly on insulin production in the state. Their actions violate the Texas Deceptive Practices Act, alleges the suit filed Thursday in the District Court of Travis County.
Related: FTC targets 3 biggest PBMs over insulin rebates
The suit also alleges PBMs CVS Caremark, CVS Caremark Rx, Express Scripts and OptumRx "act as the gatekeepers to the pharmaceutical market" and control 80% of the market in Texas, which allegedly allows them to collude with manufacturers to drive up insulin costs.
In a statement, CVS Health said it would fight the suit. "Allegations that we play any role in determining the prices charged by manufacturers for their products are false, and we intend to vigorously defend against this baseless suit," it said.
Novo Nordisk said it would defend itself against the claims and it works to “continually review and revise our offerings as well as work with diverse stakeholders to create solutions for differing patient needs.”
Other companies named in the suit did not reply to a request for comment.
Last month, the Federal Trade Commission filed an administrative complaint against Caremark Rx, Express Scripts and OptumRx and their group purchasing organizations, alleging their practices drive insulin manufacturers to raise prices and enable PBMs to capture higher rebates and fees at the expense of some patients.
Also last month, Sen. Bernie Sanders (I-VT.) said he received written commitments from several major PBMs that they would to continue to offer Novo Nordisk's diabetes and weight loss drugs Ozempic and Wegovy if the company decides to cut their list prices.