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Health & Medicine

Twenty States Join Forces Against Generic Drug Price-Fixing


— March 6, 2017

We’ve heard a lot about generic drug price-fixing lately. From Mylan and their Epipen fiasco to Teva Pharmaceutical Industries Ltd, consumers are wondering when someone will step in to make this price gouging stop before drugs like the Epipen simply become unaffordable. Well, that time has come. According to the Connecticut attorney general’s office, twenty states across the U.S., including California and Illinois, have joined a lawsuit that was filed last year, “alleging that six companies, including Mylan NV and Teva Pharmaceutical Industries Ltd, conspired to push up prices of two generic drugs.”


We’ve heard a lot about generic drug price-fixing lately. From Mylan and their EpiPen fiasco to Teva Pharmaceutical Industries Ltd, consumers are wondering when someone will step in to make this price gouging stop before drugs like the EpiPen simply become unaffordable. Well, that time has come. According to the Connecticut attorney general’s office, twenty states across the U.S., including California and Illinois, have joined a lawsuit that was filed last year, “alleging that six companies, including Mylan NV and Teva Pharmaceutical Industries Ltd, conspired to push up prices of two generic drugs.”

The lawsuit itself was filed back on Dec. 15 and is led by the state of Connecticut. Additional states were added when Connecticut filed an “amended complaint which also added violations of state antitrust laws.”  So far the lawsuit has been applauded by consumers, as many are pleased to see a broad effort by the federal and state government to reign in control of generic drug pricing.

So what drugs does the lawsuit focus on? What drugs have shot up in price so drastically to cause the federal government and state governments to finally say enough is enough? Well, there are two the lawsuit highlights, including the “delayed release version of a common antibiotic, doxycycline hyclate, and glyburide, an older drug used to treat diabetes.”

EpiPen; Image Courtesy of USA Today, http://www.usatoday.com/

Are Mylan NV and Teva Pharmaceutical Industries Ltd the only companies the government is going after? No, not even close. Other companies included in the lawsuit that was filed in the U.S. District Court for the District of Connecticut also names the following:

  • Mayne Pharma Group Ltd
  • Heritage Pharmaceuticals Inc
  • Aurobindo Pharma Ltd
  • Citron Pharma LLC

According to the lawsuit, Heritage Pharmaceuticals Inc is the “principal architect and ringleader that helped organize a wide-ranging series of conspiracies to fix prices.” This isn’t the first time a lawsuit has targeted Heritage Pharmaceuticals Inc for fixing drug prices. In fact, back in December the U.S. Justice Department “filed a related lawsuit in against two former Heritage executives.”

So far the accusations have garnered little response from the companies mentioned in the lawsuit. For instance, according to a Reuters article, “a spokeswoman for Aurobindo declined to comment while the other companies did not immediately respond to requests for comment.”

Be that as it may, one can only hope that prices get under control. After all, many people rely on the medicines affected by these price increases, which means the more expensive they get, the fewer people will be able to afford them. It will result in people having to make difficult choices about their health, all so these drug companies can make an extra buck, and that’s unacceptable.

Sources:

Twenty U.S. States Join Generic Drug Price-Fixing Lawsuit

The Government Seeks to Intervene in its Third Generic Drug Price-fixing Lawsuit

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