Cigna's Express Scripts Sues FTC, Demands Withdrawal Of PBM Report; Stock Down

(RTTNews) - Express Scripts by Evernorth, a unit of Cigna Group (CI), Tuesday said it has filed a lawsuit against the Federal Trade Commission or FTC, demanding the withdrawal of its July 2024 report about the pharmacy benefit management or PBM industry. According to the company, there is no support for claims that PBMs are responsible for high drug costs.

In pre-market activity, Cigna shares were losing around 5% to trade at $348.80.

In the filing with the federal court in Missouri, Express Scripts alleged that FTC's July 2024 report is filled with false and misleading claims about the PBM industry, and that it fails to take into account the value that PBMs deliver to consumers and patients.

Andrea Nelson, Chief Legal Officer for Cigna Group, said, "The FTC has taken unconstitutional actions in publishing a report that ignores the evidence provided by our company and other PBMs, demonstrates clear ideological bias and advances a false and damaging narrative - a narrative that could harm the health care system by removing essential checks and balances which would result in higher drug prices for American consumers."

Express Scripts said it fully cooperated with the FTC study into the PBM industry for more than two years, meeting the agency's extensive demands for data and information.

But, the FTC's report disregarded the millions of documents and terabytes of data produced by Express Scripts and other PBMs. As a result, the report is riddled with false statements, misleading insinuations and violates the Commission's duty to follow due process and serve the public interest, it said.

Express Scripts noted that its 18,000 colleagues work to improve health and lower the cost of medications for the millions of Americans. Last year alone, Express Scripts achieved arounf $38 billion in savings for clients.

According to the firm, drug manufacturers, and not PBMs, set the prices of their drugs. Express Scripts negotiates with drug manufacturers to lower the net cost of drugs for plan sponsors.