A PYMNTS Company

US: Generic drug price hikes catch DOJ attention

By  |  November 10, 2014

The US Department of Justice issued subpoenas to two makers of generic pharmaceuticals last week, sparking an investigation into the industry and its competition. Now, report say, the case is already growing.

Generic drug makers Lannett and Impax Laboratories both confirmed they were contacted by the DOJ as part of a probe into their relationships with rivals. Impax added that the subpoena demanded one of its sales representatives to hand over documents and offer testimony about communication with rival drug makers.

The DOJ also revealed details of its investigation in a filing with the Securities and Exchange Commission.

Reports released earlier this year found that the price of some generic drugs charged to pharmacies has nearly doubled in the last year – leading prices for consumers to, in some cases, triple.

Connecticut’s Attorney General launched an investigation earlier this year into price hikes for congestive heart failure drug digoxin, a drug made by both Lannett and Impax, say reports.

Full content: Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.