Six drug-making companies accused of price-fixing

Medical - Mohit Shah - Dec 20,2016

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six drug making companies accused of price fixing

The U.S. authorities have accused generic drugmakers from the U.S., Australia and India, on the charges of price-fixing.

The investigation by State attorneys was under process since a very long time. It has been found out that, the implicated companies had conspired to raise the price of the diabetes drug glyburide and the antibiotic doxycycline.

Twenty state attorneys had come together to sue a set of generic drugmakers last Thursday. The companies are accused of violating the federal antitrust law. This suit was announced a day after price-fixing charges against departed executives managed under one of the pharmaceutical firms were revealed in a Justice Department antitrust probe.

The U.S. drugmakers such as Mylan, Teva Pharmaceutical USA, Heritage Pharmaceuticals and Citron Pharma are listed in the lawsuit. Australia’s Mayne Pharmaceuticals and India’s Aurobindo Pharma are the two other culprit firms in this price hike conspiracy.

Heritage Pharmaceuticals is supposedly the prime architect of the whole case. On Wednesday, criminal charges were imposed on two of its former executives.

The civil case was part of a two-year investigation which was initiated by the office of Connecticut's Attorney General George Jepsen. This authority alleges that, the firms conspired over group dinners and other outings.

Mr. Jepsen said in an interview that, this is just the outset of the work the authorities have taken to investigate. He further added, there are many more drugs apart from the numbers mentioned in the lawsuit and several more generic drug manufacturers who should be inspected in the near future.

In the month of August, the Government Accountability Office issued a report which exposed that more than 300 of 1,441 settled generic drugs had experienced a price increase equal to 100% or more at least once in the time frame between 2010 and 2015.

Spokeswomen from Mylan and Teva denied the information of any evidences regarding their participation in the price-fixing scandal. Representatives from Citron, Aurobindo and Mayne were unavailable for any such comments.