America’s generic price fixing probe expands, to include 300 drugs and 16 firms

America’s generic price fixing probe expands; to include 300 drugs and 16 firms

By PharmaCompass

2018-12-13

Impressions: 93 Article

Over the last two years, PharmaCompass has updated you on the generic drug price fixing incidents in the US. In 2016, federal prosecutors had unsealed criminal information against Jeffrey Glazer, the former CEO and founder of Heritage Pharmaceuticals. And in November last year, there was news that Mylan’s president, Emcure’s CEO and 12 firms were to be probed in the price-fixing case.

According to a Washington Post report, the US government’s investigation over the alleged generic drug price fixing has now been expanded to include 300 drugs and 16 companies.

Investigators say voluminous documentation collected by them (much of which is unavailable to the public), shows the industry to be riddled with price-fixing schemes. The plaintiffs now include 47 states.

What started out as an antitrust lawsuit brought by states over just two drugs in 2016 is today “most likely the largest cartel in the history of the United States,” Connecticut Assistant Attorney General Joseph Nielsen told the Post.

In a note, Bernstein analyst Ronny Gal said there’s “some risk” for industry players as detailed in the Post article. However, most drugmakers have denied wrongdoing.

The investigation includes some of the biggest names in generic drugs, such as Teva, Mylan and Dr. Reddy’s. So far, the probe has received guilty pleas from two former executives of Heritage Pharmaceuticals who are cooperating with investigators.

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