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Israel's Teva pharmaceuticals named in US price fixing lawsuit

The industry is going through a period of consolidation and last week Israeli pharmaceutical giant Teva said it was buying the generic drug business of Allergan for $40.5 billion
Jean-Christophe Verhaegen (AFP/File)
Lawsuit is part of a broader drug price fixing investigation taking place at federal level and in Congress

Israeli pharmaceutical company Teva is among six drug makers named in a civil lawsuit filed on Thursday by twenty American states for allegedly entering into illegal conspiracies to raise prices on two common generic drugs.

The New York state attorney general's office announced the lawsuit in a statement, naming Teva along with Australian drugmaker Mayne Pharma, Heritage Pharmaceuticals Inc, Aurobindo Pharma, and Citron Pharma LLC.

It names Heritage as the "principal architect and ringleader" that helped organize a "wide ranging series of conspiracies" to fix prices of drugs including the delayed release version of a common antibiotic, doxycycline hyclate, and glyburide, an older drug used to treat diabetes, Reuters reports.

Jack Guez (AFP/File)

The lawsuit was filed in the US District Court for the District of Connecticut and alleges that the companies' top executives and salespeople inflated prices of their drugs by fixing their prices or allocating markets.

The civil suit is part of a broader investigation into generic drug price fixing being conducted at state and federal levels, as well as in US Congress, that has grown to involve multiple drugs and several pharmaceutical companies.

Connecticut and the nineteen other states filing the lawsuit claim that the companies' executives knew that their collusion was illegal and made efforts to hide evidence of their conduct, including by deleting electronic communications.

"Companies that collude and fix prices for generic drugs in order to pad their profits must be held accountable for the very real harm they inflict on New Yorkers’ ability to pay for life-saving medications," New York Attorney General Eric Schneiderman said in a statement, according to Reuters.

Jeff Swensen (Getty/AFP/File)

The complaint adds that the state attorneys' investigation is ongoing, and has already uncovered evidence of well-coordinated schemes on a number of drugs.

Connecticut is the lead state in the action, which also involves Delaware, Florida, Hawaii, Idaho, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Nevada, New York, North Dakota, Ohio, Pennsylvania, Virginia and Washington.

US Congress began investigating drug price fixing in 2014 in response to media reports detailing sharp rises in generic drug prices.

(Staff with agencies)

Comments

(1)

It is easy, if you dont like what they sell at the price they want go elsewhere.

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