U.S. probes contracts between drugmakers, pharmacy benefit managers

(Reuters) – The U.S. Attorney’s Office for the Southern District of New York is investigating contracts between drugmakers and companies that manage prescription benefits, according to regulatory filings.

Federal prosecutors have approached at least three companies, including Johnson & Johnson (JNJ.N), Merck & Co (MRK.N) and Endo International Plc (ENDP.O), demanding information about their contracts with pharmacy benefit managers.

Pharmacy benefit managers, or PBMs, which administer drug benefits for employers and health plans and also run large mail-order pharmacies, have been challenging the rising cost of new medications.

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