Virginia Beach Enters Litigation Over Insulin Maker, PBM Pricing

Virginia Beach is the latest city to wade into multidistrict litigation against insulin makers and pharmacy benefit managers, accusing the companies of engaging in business practices that artificially drive up the cost of diabetes medications.

Insulin manufacturers Eli Lilly & Co., Novo Nordisk A/S, and Sanofi SA have worked together with PBMs CVS Caremark, Express Scripts, and OptumRx to promote a drug pricing system that encourages drugmakers to pay higher rebates to PBMs in exchange for better placement on a health plan’s list of covered drugs, or formulary, the city and school board of Virginia Beach ...