The Attorney General in New York has summoned three Big Pharma companies and requested documents about their pricing and marketing strategies.
Approximately 7.5 million Americans with type 1 diabetes rely on insulin to properly metabolize glucose, but rising drug prices make it prohibitive for many and have gained control from US regulators.
Eli Lilly, Sanofi and Nordisk – three pharmaceutical giants – control the vast majority of the market for life-saving medicine.
Following the promises made by President Donald Trump to lower drug prices, the New York Attorney General is only the last officer to go after the three companies, according to their documents with the Securities Exchange Commission (SEC), STAT News reported.
Insulin prices have tripled in the US since the 2000s and US officials suspect its three major producers – Eli Lilly, Sanofi and Novo Nordisk – are to blame. The Attorney General in New York sued the three companies for documents about their pricing structures
A vial of insulin currently costs nearly $ 1500.
After his co-inventor Dr. Frederick Banting initially refused to apply for patents and take advantage of insulin, each of the three intellectual property rights owners agreed to accept only one Canadian dollar.
First the price of the medicine rose and then it rose. Since the beginning of the 2000s, costs have tripled.
Insulin is so priceless that some Americans have even switched to Canada to buy it for a fraction of the American price.
Across the board, US drug prices are extremely high, uncontrolled by government regulation and based instead on patents, competition and negotiations between insurers and pharmaceutical companies.
And US officials have accused many pharmaceutical companies of working together to push up prices for generic drugs.
In May, dozens of states filed a lawsuit against 20 pharmaceutical companies.
Theoretically, competition between companies should help to lower the prices of medicines for which patents have expired.
Instead, public prosecutors suspect that companies agree not to praise each other too much.
In July, the Attorney General (AG) office in New York, Letitia James, appears to have launched their own investigation into Sanofi, Eli Lilly and Novo Nordisk.
According to SEC filings, the state AG summoned the companies to transfer documents regarding the way in which they set their prices and market their medicines.
& # 39; The summons requires the production of various documents related to Sanofi's insulin products, including documents relating to prices, discount programs, sales and expenses, contracts, marketing material and legal proceedings & # 39 ;, is one of the pieces.
& # 39; Sanofi US is participating in this study. & # 39;
The New York AG office told DailyMail.com that, for policy reasons, it cannot confirm or deny that it has summoned Sanofi, Eli Lilly and Novo Nordisk.
Meanwhile, the Congress Monitoring and Reform Committee is also investigating Sanofi's prices for two other drugs, and the Senate finance committee sent the company a questionnaire with information about its insulin practices in January.
Again, the company wrote that it cooperates, but expressed a hint of uncertainty.
& # 39; Although we cannot predict the outcome of these issues, they – as well as the adoption of various policy proposals currently under consideration – may impact our ability to market our medicines, and in particular our insulin products, on the US market prizes, & # 39; SEC submission.
& # 39; In addition, potential policies such as imports and international reference prices may affect our activities in other jurisdictions. & # 39;
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