Six Generic Drug Companies Accused of Price Fixing

Six Generic Drug Companies Accused of Price Fixing

For the third month in a row, pharmaceutical companies have made headlines for fraud. In October, Mylan, the major manufacturer of EpiPens, agreed to a multi-million dollar settlement for misrepresenting themselves as a generic product, allowing them to fraudulently collect rebates they did not deserve.1 November brought the arrests of Philidor and Valeant's executives Gary Tanner and Andrew Davenport for illegal kickbacks between the two companies.2 On December 15th, Mylan was charged yet again, along with Teva Pharmaceuticals, Citron Pharma, Heritage Pharmaceuticals, Mayne Pharmaceuticals, and Aurobindo Pharmaceuticals for price fixing two of their generic drugs.3  

George C. Jepsen, Connecticut’s attorney general, filed the complaint against the six pharmaceutical giants, focusing first on doxycycline and glyburide, a common antibiotic and diabetes drug, respectively. However, Jepsen has stated that there will be more to come as more evidence surfaces.4 This first complaint states that Mylan and Teva coordinated with the other four, smaller companies to achieve high, noncompetitive prices for their products. These actions come at a high cost to patients as their cheaper option for treatment is threatened.4

 

References:

1. Katie Thomas, “Mylan’s Chief is Chastised by Lawmakers Questioning EpiPen Pricing,” NY Times, last modified September 21, 2016, http://www.nytimes.com/2016/09/22/business/mylan-chief-to-insist-epipen-is-priced-fairly-at-house-hearing.html

2. Caroline Humer and Svea Herbst-Bayliss, “Valeant says Philidor pharmacy shutting down as it cuts ties,” Reuters, last modified November 17, 2016, http://www.reuters.com/article/us-valeant-pharmacies-idUSKCN0SO12W20151030

3. Nathan Vardi, “State Attorneys General Accuse Six Generic Companies of Fixing Drug Prices,” last modified December 15, 2016, http://www.forbes.com/sites/nathanvardi/2016/12/15/state-attorneys-general-file-price-fixing-suit-against-six-generic-drug-companies/#348b9fc074ad

4.  Katie Thomas, “20 States Accuse Generic Drug Companies of Price Fixing,” last modified December 15, 2016, http://www.nytimes.com/2016/12/15/business/generic-drug-price-lawsuit-teva-mylan.html

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