Here's how prosecutors say generic drug makers schemed to fix prices

Here’s how prosecutors say generic drug makers schemed to fix prices

Dozens of states have accused 17 generic drug makers of colluding to fix prices on a slew of medicines. Parts of the lawsuit have been kept from public view — but STAT has obtained an unredacted version of the complaint. Here’s the rundown:

• The background: The lawsuit, first filed in 2016, claims that drug makers took part in a price-fixing conspiracy, an allegation the drug makers deny. Two executives from Heritage Pharmaceuticals — including former president Jason Malek — have pleaded guilty to antitrust crimes and are cooperating with prosecutors on the case.
• The new details: The complaint details examples in which prosecutors say companies worked together to manipulate the amount or timing of price hikes. One example involved the generic versions of two short-term anxiety and insomnia drugs. According to a redacted passage, Malek wrote an email in 2013 to two employees that read: “Looking to take a price increase on this. Only other competition is [Dr. Reddy’s Laboratories.] We don’t want to make any waves and we are not looking for additional share, just want to maintain what we have at a minimum of a 4x price. Anyone want to reach out to DRL and communicate to feel out?”

STAT’s Ed Silverman has the details and the full complaint — STAT Plus subscribers can read more here.