FDAnews Drug Daily Bulletin
Pharmaceuticals / Regulatory Affairs

Express Scripts Claims ‘Profiteering’ in Suit Against Overdose Treatment Manufacturer

June 8, 2017
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The nation’s largest pharmacy benefits manager, Express Scripts, has sued Kaleo — maker of Evzio, an injectable emergency treatment for heroin and painkiller overdoses — claiming it owes nearly $15 million in fees and rebates.

The lawsuit filed in the U.S. District Court for the Eastern District of Missouri claims Kaleo owes administrative fees that increased at the same time as Evzio’s prices.

In January 2016, Evzio’s list price for two injectors was $937.50. Three months later, the price had increased to $4,687.50. During that period, Express charged for formulary rebates and price protection rebates. At almost $14 million, these represent the bulk of the money Express is seeking in the suit.

The lawsuit follows a wave of criticism of Kaleo’s financial practices. In February, more than 30 senators wrote to the company’s president and CEO, Spencer Williams, expressing concern over the Evzio price increases. The lawmakers requested information on Kaleo’s pricing structure, as well as details on any federal reimbursements the company receives.

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