A six-year-long class action lawsuit filed in a New Jersey federal court against Eli Lilly has come to an end after the firm agreed to pay $13.5 million in the settlement. According to claimants, the company overpriced its insulin causing patients to resort to extreme measures like intentionally slipping into diabetic ketoacidosis to receive insulin samples from hospital emergency rooms and starving themselves to control their blood sugar levels to survive the pricing crisis.
Allegations in the Insulin Lawsuit Against Sanofi, Novo Nordisk, and Eli Lilly
- Lawsuit filed in 2017 against Sanofi, Novo Nordisk, and Eli Lilly
- Allegations claim all three companies engaged in a race to increase the list prices of their medications
- The actual price to pharmacy benefit managers remained steady or decreased in some cases
- The alleged motive was to capitalize on the growing gap between public and private prices
- Companies aimed to secure favorable formulary positioning
List price-based out-of-pocket expenses had negative implications for patientsAlthough Sanofi and Novo Nordisk are yet to settle the case, earlier this year when Eli Lilly announced that it will be capping its out-of-pocket expenses, the other two firms followed suit.
Steve Berman, the managing partner of Hagens Berman, has shared that Eli Lilly’s settlement will bring immense relief to those who are underinsured or paying with co-insurance.
Price cuts by Eli Lilly do not just include a 70% price reduction by the company when it comes to its most commonly prescribed insulin but also cutting the list price of f its non-branded insulin, Insulin Lispro Injection to under $30 a vial. In addition to this, the firm has also launched a basal insulin that is biosimilar to the Lantus injection called Rezvoglar, a five-pack for which would cost patients around $92.
In order to ensure that people with diabetes also have access to these medications, Eli Lilly also stated that it will cap out-of-pocket costs at $35 at participating retail pharmacies for people with commercial insurance using Lilly insulin and for those people who do not have insurance, they can download the Lilly Insulin Value Program savings card to receive Lilly insulins for $35 per month. This measure will last for the next 4 years.
Over the course of the price caps, the settlement will be worth $500 million to patients and eligible claimants will also be able to receive cash payments based on their purchases of Lilly insulins.
These initiatives by the firm were preceded by President Joe Biden’s State of the Union Address where he called on Congress to limit insulin costs for all patients to $35 per month. Under Medicare, this is the price set by the Inflation Reduction Act.
