Dr Reddy’s Laboratories, other drug cos in price fixing case

Hyderabad: Several Indian pharma companies are under check over drug price rigging as the latest lawsuit, brought by the attorneys general of 45 states and the District of Columbia, accused 18 companies and subsidiaries and named 15 medicines. Sun Pharma, Glenmark Pharmaceuticals and Dr Reddy’s Laboratories (DRL), Aurobindo Pharma, to name a few, are believed to be in the list, according to media reports.

Speaking to the media in Hartford, Connecticut Attorney General George Jepsen, who is leading the case, said: “The investigation is continuing, and that claims would likely be brought against more companies, and possibly executives, in the future. It is our belief that price-fixing is systematic, it is pervasive, and that a culture of collusion exists in the industry.”

Reuters reported that a large group of US states accused several key players including Indian pharma companies in the generic drug industry of a broad price-fixing conspiracy. The group has resorted to widen an earlier lawsuit to add many more drugmakers and medicines in an action that sent some company shares tumbling.

The original complaint, filed in December, targeted Mylan, Heritage, Aurobindo Pharma USA Inc, Citron Pharma LLC, Mayne Pharma USA Inc and Teva Pharmaceuticals USA Inc, according to Reuters. Attorneys general of 45 states also targeted two individual executives-- Rajiv Malik, president and executive director of Mylan NV, and Satish Mehta, CEO and managing director of India’s Emcure Pharmaceuticals.