A PYMNTS Company

US: States sue generic drug companies over price-fixing allegations

By  |  December 15, 2016

Twenty state attorneys general sued a group of generic drug companies Thursday, accusing them of conspiring to fix prices on an antibiotic and a diabetes medication.

The suit comes a day after price-fixing charges against former executives at one of the drugmakers were unsealed in a Justice Department antitrust probe.

The attorneys general, including New York’s Eric Schneiderman and Connecticut’s George Jepsen, alleged in a suit filed in Connecticut federal court that Heritage Pharmaceuticals; Aurobindo Pharma USA; Citron Pharma; Mayne Pharma; Mylan Pharmaceuticals; and Teva Pharmaceuticals USA, conspired to manipulate prices for doxycycline hyclate, an antibiotic, and glyburide, used in the treatment of diabetes.

On Wednesday, federal prosecutors unsealed charges against Heritage’s former chief executive and former president, alleging they conspired with competitors to fix prices and allocate customers for the same two drugs.

Heritage has said it fired those executives and is cooperating with the Justice Department.

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.