INDIANAPOLIS – Attorney General Curtis Hill today announced that Indiana has joined 39 other states in a federal antitrust lawsuit that alleges six generic drug manufacturers illegally collaborated together in an attempt to unfairly suppress trade; fraudulently boost and alter prices; and diminish competition in the United States for two generic drugs.
An amended complaint filed with the federal court also adds claims of alleged violations of state antitrust laws – in addition to the alleged violations of federal antitrust laws – in each of the 40 states. The complaint also alleges violation of state consumer protection laws in most of the plaintiff states. The lawsuit was filed against generic drug manufacturers Heritage Pharmaceuticals Inc.; Aurobindo Pharma USA Inc.; Citron Pharma LLC; Mayne Pharma (USA) Inc.; Mylan Pharmaceuticals Inc.; and Teva Pharmaceuticals USA Inc.
“Hoosiers needing medicine depend on drug manufacturers to provide quality products and reasonable prices. While it is fine for manufacturers to make a profit, it is important that we along with other states involved in this investigation evaluate and consider any information that might suggest conduct harmful to consumers,” Hill said. “We look forward to a complete investigation and taking whatever action is necessary as a result.”
In 2014, the state of Connecticut launched a private investigation looking into suspicious price increases for specific generic pharmaceutical drugs. The investigation discovered evidence of long-running coordinated efforts and schemes to fix prices and allocate markets for a number of generic pharmaceuticals in the United States. In this lawsuit, the states are charging the six generic drug manufacturers with entering into contracts, combinations and conspiracies that had the effect of unreasonably restraining trade; artificially inflating and maintaining prices; and reducing competition in the markets for the antibiotic Doxycycline Hyclate Delayed Release — commonly referred to as “Doxy DR” — and Glyburide, an oral diabetes medicine.
The state of Connecticut began its investigation after outcry over suspicious price increases of dozens of generic drugs. The generic drug manufacturers argued that the significant price increases were due to several factors such as industry consolidation and the elimination of unprofitable generic drug product lines, according to the complaint filed by the states. But the state of Connecticut’s investigation revealed the underlying cause for much of the price increases to be collusion among generic drug competitors, the complaint says.
The complaint further alleges that the defendants routinely coordinated their schemes through direct interaction with their competitors at industry trade shows, customer conferences and other events, as well as through direct email, phone and text-message communications.
Connecticut and Indiana were joined by Alabama, Arizona, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington and Wisconsin.
The lawsuit was filed under seal in the U.S. District Court for the District of Connecticut. The amended complaint is attached. Portions of the complaint are redacted in order to avoid compromising the ongoing investigation.
