Diabetes Patients Launch Lawsuit Against Drug Companies For 'Pricing Fraud'
A group of 11 diabetes patients have recently decided to collectively file a lawsuit against three drug companies that they allege are systematically increasing their list prices for insulin in an act of 'pricing fraud'.
They say that the pricing-fix saddles patients with crushing and unexpected expenses and that they are only able to do this because of the monopoly that they hold in the market. They filed their lawsuit in the U.S. District Court In Massachusetts. They are arguing that the drug companies are in violation of the Racketeer Influenced and Corrupt Organizations Act as well as state consumer protection laws.
The insulin market is currently dominated by a small group of companies and they make billions of dollars every year selling this product. They've decided to steadily raise their prices for years and where it used to cost an individual about $21, it now can cost them up to $255 for the same vial. The mess has gotten so bad that last year, Sen. Bernie Sanders actually asked for a formal federal investigation to take place into the possibility of collusion happening with regard to this market and insulin prices.
What the market (and the people) needs is a little more freedom so that it can foster an atmosphere of innovation and competition, that is what will inevitably help consumers and work toward driving the price down. There are millions of patients in the US alone who suffer from diabetes and need to take insulin and they could benefit from having more options, rather than being forced to pay whatever the current crony market decides that they should.
Expiring Patents
Some expect that the price for insulin could begin to fall, thanks to a number of insulin patents that have recently expired. And they say that this will pave the way for further competition in this area, but it's still an area of the market that is choked with government interference. It's no wonder that we don't see much progress very quickly.
The insulin market is expected to grow to about $43 billion by 2021.
Sources:
https://www.washingtonpost.com/news/wonk/wp/2017/01/30/diabetes-patients-sue-insulin-makers-for-pricing-fraud/?tid=sm_tw&utm_term=.276a9edacc4b
http://www.businessinsider.com/sanofi-novo-nordisk-lilly-named-in-class-action-insulin-lawsuit-2017-1
http://www.nejm.org/doi/full/10.1056/NEJMms1411398
https://globenewswire.com/news-release/2016/08/25/866781/0/en/Human-Insulin-Market-Poised-to-Surge-from-USD-27-0-Billion-in-2015-to-USD-43-6-Billion-Globally-by-2021-ZionMarketResearch-Com.html
http://www.cbsnews.com/news/how-drug-companies-keep-insulin-prices-high/
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I hope it works! My insulin is $300 a month!
wow thanks
Wow, going after them under the RICO act. That is unusual and potentially serious. I believe that is federal prison time if convicted under RICO.
I agree with you
You think that's bad, how about the fact that they've known for decades that diabetes is controllable and curable, yet they spend millions muddying the waters, and paying off politicians, policy makers, scientists, doctors, nutrition organizations and colluding with the food industry to keep people unhealthy, and driving the diabetes epidemic?
How they are killing you.
We need a way to just replace the pancreas. I suspect we would already have one if it were not for the huge amount of cash that insulin prescriptions rake in. If I am ever rich I will make my own company and first order of business will be making a replacement pancreas using people's own stem cells. I believe it can be done.
SCAM!
Interesting post, and very informative and comprehensive in its content. Considering that an individual's life is dependent on taking insulin there does seem justification for the action.
I hope the fact that the patents will expire will help. I really hope (but who knows, when so much money is in the game...)
I am totally on board with reining in the greed and destruction the pharmaceutical industry is causing.
Another thought though is to make a healthy sugar, xylitol from hemp, the same cost as the horrific diabetes causing (and 75% of all diseases) sucrose, concentrated fructose, dextrose, artificial sweeteners and the 40 other names the corps are hiding refined sugars with.
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