Generic Drug Price Fixing is Escalating Costs For Patients

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Generic Drug Price Fixing is Escalating Costs For Patients

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Claims have been made by 45 states and the Department of Justice that generic drug prices are already fixed and the ostensible conspiracy might have caused U.S. business and customers more than $1 billion.

Prosecutors made a complaint that when the drug makers were asked by the pharmacies to give out their lowest prices, then the manufacturers would improvise the bidding process.

Michael Cole, head of the antitrust department at the Connecticut attorney general’s office made a statement that the companies would work out among each other as to who would get the lowest price and then the other competitors would put in a cover bid as to make it appear like a competitive bidding.

Cole’s team was successful in congregating millions of e-mails, phone calls and text message between the years 2012-2015. These records collected clearly show that in reality the executively divide the shares among its customers, set prices for the same but at the same time giving an impression that generic pharmaceuticals were being conducted in an open and fair marketplace.

Prosecutors say that it is because of this pre price fixing scheme that copays and health insurance premiums have gone high. It was also said by them that programs that were tax funded like Medicaid and Medicare highly overspent on drugs.

As far as now, there are 2 executives from Heritage Pharmaceuticals who have been found guilty of committing antitrust crimes. The two are now passing on information to the prosecutors about who gives the information on the two rigged prices on various drugs like antibiotic doxycycline that shot up the price by 8000%.

Maken Delrahim, head of the department of Justice antitrust division made this statement at a seminar, “To the extent that taxpayers have had to pay the bill, I think that the taxpayers should recover. And we will get involved on the civil side and recover the damages for the U.S. government.
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