Texas AG sues Eli Lilly for allegedly bribing medical providers to prescribe Lilly drugs
Eli Lilly offered illegal incentives to Texas medical providers, including a "free nurse" program and reimbursement support services, to steer providers to provide the company's drugs, Paxton alleges in a lawsuit filed August 11 in a Texas district court. Lilly, one of the world's largest pharmaceutical companies, denied the allegations in an August 12 statement to IndyStar.
The Lilly programs mentioned in the suit offered free trainings for nurses and medical providers, which helped Lilly market their drugs when they launched, the suit says. According to Paxton's office, many Texas residents prescribed these drugs were on state Medicaid, so these actions violated the Texas Health Care Program Fraud Prevention Act.
'Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme,' Paxton said in a news release. 'Eli Lilly fraudulently sought to maximize profits at taxpayer expense and put corporate greed over people's health. I will not stand by while corporations unlawfully manipulate our healthcare system to line their own pockets.'
A spokesperson for Eli Lilly said the company denies the allegations and plans to defend against them in court.
It's not the first time Paxton has taken a stab at Lilly in the courts. In October, Paxton sued insulin manufacturers and pharmacy benefit managers, including Lilly, Express Scripts and CVS, for allegedly concocting a conspiracy to increase insulin prices.
Health Choice Alliance LLC, a New Jersey based company, joined Texas as a plaintiff. Health Choice has sued Lilly in the past, alleging the company engages in kickbacks.
'Multiple courts and the federal government have rejected claims by this same corporate relator against Lilly as meritless," a Lilly spokesperson said in a statement. "In fact, the United States government determined that 'the relators' allegations lack sufficient factual and legal support' in a prior case, explaining that 'federal healthcare programs have a strong interest in ensuring that, after a physician has appropriately prescribed a medication, patients have access to basic product support relating to their medication.' We intend to vigorously defend against these allegations.'
At the heart of the Texas lawsuit is a class of drugs named GLP-1s prescribed for diabetes and weight loss. Named for the gut hormone receptor the drug targets, injectable GLP-1s have exploded in popularity since Zepbound hit the market in late 2023.
Weight loss drugs: Eli Lilly closer to breakthrough weight loss drug; shares tumble as some question results
The kickback lawsuit against Lilly is one way Paxton is protecting Texas patients "from corporate schemes that undermine the integrity of the healthcare system," according to his office.
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