Express Scripts (NSDQ:ESRX) and other pharmacy benefit managers have been accused of giving Mylan‘s (NSDQ:MYL) EpiPens favorable placement on drug formularies in exchange for kickbacks, according to a proposed class action filed in Kansas federal court this week.
The suit was brought by people covered under Employee Retirement Income Security Act benefit plans. These consumers claim that pharmacy benefit managers breached their fiduciary duties under the Employee Retirement Income Security Act of 1974, alleging that drugmakers like Mylan hike the price of EpiPens and other devices to give a portion of the profit back to PBMs, who in turn give them preferential placement on drug formularies.
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