Eli Lilly (NYSE:LLY), Sanofi (NASDAQ:SNY), and Novo Nordisk (NYSE:NVO) are facing a lawsuit from Mississippi alleging that the companies have colluded to keep insulin prices high.
Attorney General Lynn Fitch says that over the last 10 years, the companies have raised prices as much as 1000%, within days of each other.
She adds this has happened even has insulin production costs have decreased.
Fitch notes that in 2016, the average diabetic spent just over $5700 per year.
Fitch further alleges that the increases are part of a "fradulent conspiracy" between the companies and pharmacy benefit managers -- who are also named in the suit -- and manage prescription drug benefits on behalf of health insurers.
In Mississippi, 25% of all health care expenditures are related to diabetes care.
In January, the Senate Finance Committee issued a 90-page report examining the factors behind insulin price increases. The document also mentions the three companies extensively.
Shares of Eli Lilly are down 0.1% to $223.27, Sanofi shares are down a penny to $53.91, and Novo Nordisk shares are up 0.1% to $84.65 in morning trading.