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(Adds details of complaint and FTC comments in paragraphs 4-8, updates title, byline and date) by Jody Godoy
Pharmacy benefit manager Express Scripts filed a lawsuit with the U.S. Federal Trade Commission (FTC) on Tuesday over the regulator’s recent report on drug pricing, calling the report’s conclusion that prescription middlemen drive up drug costs defamatory.
The lawsuit asks a federal judge in St. Louis, Missouri, to order the FTC to retract the report and to disqualify Chairwoman Lina Khan from any action involving the company, which is owned by Cigna Corp. CI.N.
The FTC said in the July report that market consolidation has led PBMs to favor their own affiliated businesses, creating conflicts of interest that make it harder for small, independent pharmacies to compete by diverting patients away from them.
Express Scripts said in its lawsuit that the report relied heavily on public comments and ignored extensive evidence provided by PBMs. The report has led to lawsuits against the company and investigations by state regulators and federal lawmakers, Express Scripts said.
“The Commission was designed to be a bipartisan advocate for consumers and fair competition, not an ideological pawn driven by political winds and special interests,” the company said.
“The FTC stands by its study,” said FTC spokesman Douglas Farrar, adding that three companies control nearly 80 percent of the market.
“This is a complicated and opaque market, and the FTC is committed to using its clear authority to help the public and policymakers understand it,” Farrar said.
The three largest PBMs are UnitedHealth Group Inc.’s Optum unit UNH.N , CVS Health Corp. CVS.N CVS Caremark and Express Scripts.
