Six major drug manufacturers have been targeted in a lawsuit by twenty states’ attorneys general, who are accusing them of conspiracy to “artificially inflate and manipulate prices.” These allegations are the culmination of a two-year long investigation (still continuing as of this writing) that began in Connecticut and has since spread to other states from Washington to Florida.
According to New York Attorney General Eric Schneiderman, senior executives at Mylan, Teva and other companies have been meeting at industry trade shows and various business conferences as well as engaging in electronic communications, during which they conspired to “fix and maintain prices, allocate markets and otherwise thwart competition.” The medications at the heart of the alleged conspiracy are doxycycline hyclate, a treatment for severe acne, and glyburide, a diabetic prescription drug that is similar to sulfa drugs used to treat allergies, malaria and fungal infections.
In addition to Mylan and Teva, the defendants named in the federal lawsuit include Citron Pharma, Aurobindo Pharmaceuticals, Mayne Pharmaceuticals and Heritage Pharmaceuticals. According to the complaint that was filed in Connecticut, the scheme allegedly began with the CEO of Heritage, Jeffery Glazer.
Attorneys for the various states allege that Heritage entered into an agreement with Mylan, by which the latter would end its relationship with distributors so that the former would have a larger share of the market. They further allege that former Heritage President Jason Malek maintained a “business relationship” with an unnamed employee at Teva for the purpose of raising glyburide prices.
Facing criminal charges himself, Glazer is expected to enter a plea of guilty when court proceedings begin in January. Reports indicate that he is cooperating with authorities, and will be naming other executives with whom he colluded.
For now, at least two of the corporate suspects are denying any involvement. A spokesperson for Mylan told the media that the company knows of “no evidence that Mylan participated in price fixing.” A similar statement was issued by Teva: “We have not found evidence that would give rise to any civil or criminal liability.”
Considering Mylan and Teva’s respective records, it is safe to say that such fish won’t fry (to use a colloquialism). Earlier this year, Mylan drew fire for blocking rival Teva from coming out with a generic version of the life-saving EpiPen, used as an emergency treatment for people with food allergies. At the same time, the company raised the price on EpiPens to $600 – a 500% increase – and cheated the federal Medicare program and American taxpayers out of millions of dollars.
This lawsuit will hopefully raise awareness and put additional pressure on what has become an out of control, predatory industry that for too long, has been driven by sheer greed, placing profits over the welfare of human patients.