Insulin Makers See Antitrust Charges Dismissed but Still on Hook for Racketeering

Drug wholesalers’ claims that Eli Lilly, Sanofi, Novo Nordisk and a group of pharmacy benefit managers (PBMs) engaged in racketeering can proceed, said a federal judge, who at the same time dismissed antitrust allegations that the companies worked together to overcharge for diabetes drugs.

The wholesalers allege that the companies “engaged in a scheme . . . to corrupt the supply chain by artificially inflating list prices in exchange for preferred formulary placement, shifting the cost of bribes and kickbacks to direct purchasers of the insulin drugs.”

PBMs named in the lawsuit are CVS Health, Express Scripts and United Health Group.

U.S. District Court Judge for the District of New Jersey Brian Martinotti concluded that the wholesalers “have plausibly alleged” their complaint under the Racketeer Influenced and Corrupt Organizations (RICO) Act and the federal Anti-Kickback Statute.