Pharmaceutical giants Merck and Eli Lilly have disclosed that the Justice Department is probing their drug pricing practices.
Merck said, "We had received a 'civil investigative demand' from the US Attorney's office in the state of Pennsylvania for information on its contracting and pricing of the Dulera inhalation aerosol with pharmacy benefit managers and Medicare, the federal government health insurance program for the elderly and people with disabilities."
‘The Justice Department officials are probing some drug pricing practices of Merck and Eli Lilly. Both the pharmaceutical companies said that they were cooperating with the probes.’
AdvertisementElli Lilly's request for information came from the same US attorney's office. Lilly learned of the inquiry in September 2015. Lilly said, "Justice Department officials are conducting an inquiry concerning our treatment of certain distribution service agreements with wholesalers when calculating and reporting Average Manufacturer Prices in connection with the Medicaid drug rebate program."
Both companies said that they were cooperating with the probes. These inquiries come as drug companies such as Valeant Pharmaceuticals International face higher scrutiny over drug pricing following accusations of predatory pricing.