Federal Trade Commission seal is seen at a news conference at FTC Headquarters in Washington, U.S., July 24, 2019. REUTERS
NEW YORK, Sept 17 (Reuters) – Pharmacy benefit manager Express Scripts sued the U.S. Federal Trade Commission on Tuesday over the regulator’s recent drug pricing report, calling the report’s conclusion that the prescription middlemen raise drug costs defamatory.
The lawsuit, asks a federal judge in St. Louis, Missouri to order the FTC to take the report down and recuse Chair Lina Khan from any actions pertaining to the company, which Cigna Corp owns.
The FTC said in the July report that market consolidation has led to PBMs favoring their own affiliated businesses, which creates conflicts of interest that prevent smaller independent pharmacies from staying competitive by steering patients away from them.
The report leans heavily on public comments and ignores reams of evidence the PBMs provided, Express Scripts said in its lawsuit. The report has led to lawsuits against the company and probes by state regulators and federal lawmakers, it said.
“The Commission was intended to be a bipartisan defender of consumers and fair competition, not an ideological pawn driven by political winds and special interests,” the company said.
“The FTC stands by our study,” said FTC spokesperson Douglas Farrar, adding that three companies control nearly 80% 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 biggest PBMs are UnitedHealth Group Inc’s Optum unit, CVS Health Corp’s CVS Caremark and Express Scripts.
Reporting by Susan Heavey in Washington and Jody Godoy in New York; editing by Andrew Heavens and Chizu Nomiyama
