- 46 state attorneys general are investigating drugmakers over price fixing of generic drugs. In total, 18 companies and two top executives, including Mylan’s president, are now named in the complaint. Mylan’s stock fell more than 8% on the news.
A lawsuit alleging price-fixing of generic drugs is about to be expanded to include nearly every state in the country, and one company – Mylan – is already feeling the heat.
Forty-six state attorneys general are alleging price fixing of generic drugs by 18 companies.
The drugs range from anxiety medications to diabetes treatments, to antibiotics. Generic drugs are meant to come in at a lower price than the original branded version that are no longer protected by patents, cutting prescription drug costs for consumers because any number of companies can now make the drug.
“We allege in this complaint that the defendant companies’ collusion was so pervasive that it essentially eliminated competition from the market for these 15 drugs in its entirety,” Connecticut Attorney General George Jepsen said in a statement. “Our ongoing investigation continues to uncover additional evidence, and we anticipate bringing more claims involving additional companies and drugs at the appropriate time.”
That’s up from the 20 state attorneys who sued 6 companies, including Mylan, alleging the generic drugmakers colluded on prices. The drugs in question at the time were a generic antibiotic called doxycycline hyclate and an antidiabetic medication called glyburide.
The states are zeroing in on a man named Rajiv Malik, Mylan’s president and executive director, along with Satish Mehta, CEO at Emcure Pharmaceuticals. Mylan’s shares are down more than 8% on the news.
Mylan said in a statement:
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“We have been investigating these allegations thoroughly and have found no evidence of price fixing on the part of Mylan or its employees. Our review of the Connecticut Attorney General’s press release underpinning the complaint does not change our views. We have asked the various attorneys general leading this case to share with us what information they believe supports these new allegations and, to date, they have not done so. Mylan has deep faith in the integrity of its President, Rajiv Malik, and stands behind him fully. Mylan and Rajiv Malik both intend to defend this case vigorously, and we look forward to the opportunity to present a full defense.”
Here are all the companies that are part of the expanded investigation, including the six originally included:
- Heritage Pharmaceuticals Aurobindo Pharma Citron Pharma Mayne Pharma Mylan Pharmaceuticals Teva Pharmaceuticals Actavis Holdco Actavis Pharma Ascend Laboratories Apotex Corp Dr. Reddy’s Laboratories Emcure Pharmaceuticals Glenmark Pharmaceuticals Lannett Company, Inc. Par Pharmaceutical Companies Sandoz Sun Pharmaceutical Industries Zydus Pharmacuticuals