The US Federal Trade Commission (FTC) is set to file a lawsuit against UnitedHealth, Cigna, and CVS Health over their roles as intermediaries in negotiating drug prices, including insulin. A Reuters anonymous source revealed this.

US FTC Plans to Sue Drug Middlemen Over Insulin Prices

The move comes as part of an ongoing investigation into the practices of pharmacy benefit managers (PBMs), which these companies own.

The focus is on the rebates and volume-based discounts PBMs negotiate with drug manufacturers and how these deals affect drug pricing and accessibility.

READ NEXT: FTC Sues to Block $8.5 Billion Merger of Coach and Michael Kors Handbag Makers

Response of CVS Health

CVS Health has stated its intention to defend itself strongly. A CVS spokesperson told Reuters that any action restricting PBM negotiation tools would benefit the pharmaceutical industry and revert the market to a less favorable state for American businesses and patients.

The FTC is also investigating drug manufacturers, targeting major insulin producers Sanofi, Novo Nordisk, and Eli Lilly. Sanofi emphasized that its pricing practices comply with legal standards and reiterated its commitment to making medicines affordable for patients. 

READ MORE: FTC Set to Approve Major Exxon Mobil Deal With Pioneer But With Board Twist