Pharmaceutical company sues Colorado over epinephrine price-cap law

DENVER ( KDVR ) — The state of Colorado is being sued over a law capping the cost of a lifesaving drug.

A newly implemented state law is being challenged in federal court. Community groups who backed the law said companies making the drug do not need to make extra money.

“I don’t think I was exactly surprised. The companies that manufacture these auto-injectors make a lot of money doing it. They fought at the legislature, now they are fighting it in courts,” said Zach Neumann, co-CEO and co-founder of the Community Economic Defense Project.

Last year, Neumann and his group advocated for a law to cap the price of epinephrine auto-injectors at $60; the measure took effect in January 2024. The name-brand drug Epi-Pen can cost upwards of $600.

A company called Amneal Pharmaceuticals is suing Colorado over the law that put the cap in place and established an affordability program for auto-injectors.

“I think what we have seen is that when you are facing life-threatening allergies, you’ll take whatever brand you can get. This is a product that is in your pocket and if you don’t have one or you can’t access one, you’re going to either be very sick or you are possibly going to die,” Neumann said.

Amneal’s injectors called “Adrenaclick” typically cost somewhere between $100 and $200. While the company did not respond to FOX31’s request for comment  — the company states in the lawsuit that “unless manufacturers are compensated, the part of the law that requires companies to send pharmacies a free replacement injector for uninsured Coloradans or reimburse pharmacies for the cost of one, violates the ‘Takings Clause’ of the Fifth Amendment.”

Amneal’s prices are not that much higher than the $60 cap; nonetheless, the company is suing Colorado. Neumann said even the off-brand injectors are too high for patients.

“Why are they spending millions and millions of dollars in legal fees and why did they spend hundreds and thousands in lobby fees to oppose this bill? It’s because they have a perfect opportunity. They have a product that they can manufacture for a few dollars a unit and then they can turn around and sell it for hundreds of dollars per unit. They’re making that windfall profit on the backs of families,” Neumann said.

Attorney General Phil Weiser is the defendant in this case on behalf of the state. His office said he cannot comment on ongoing litigation.

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