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Express Scripts Sued by Compounding Pharmacies

01/21/2016

Six compounding pharmacies have filed suit against Express Scripts accusing them of using illegal tactics to drive compounding pharmacies out of the market.

Although Express Scripts and Express Scripts Holding Co are the only defendants named, the suit filed in the US District Court in St. Louis states that Express Scripts, CVS Health Corp, OptumRx Inc, and Prime Therapeutics LLC worked to “jointly boycott compounding pharmacies to eliminate plaintiffs from the market for pharmaceuticals covered by group and individual health plans,” according to a report in Business Insurance.

The plaintiffs include Precision Rx Compounding LLC; C&M Health Pro LLC; Northern VA Compounders PLLC; Toth Enterprises II Pa; Austin-based The Daily Dose LP; and CPRx Pharmacy LP.

Compounded prescriptions, which allow for personalization, typically combine ≥2 medications. According to St. Louis Business Journal, Express Scripts told doctors not to prescribe compounded drugs; made misleading statements about the safety of compounding drugs; denied coverage to compounding drugs; and restricted the use of mail-order delivery for compounded drugs, among others.

“As a result of the agreement between Express Scripts and its co-conspirators to exclude Plaintiffs and other compounding pharmacies from various prescription drug markets, competition in those markets has been reduced, the supply of medically beneficial compounded products has decreased and faces near elimination, and patients are purposefully being driven to inferior products at Express Scripts’ and its co-conspirators’ own pharmacies,” the lawsuit said.—Kelsey Moroz

 

References:

Harrison S. Compounding pharmacies sue Express Scripts over ‘boycott.” Business Insurance. January 20, 2016.

Kirn J. Express Scripts in new fight with compounding pharmacies. St. Louis Business Journal. January 20, 2016.

 

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