Charges Likely in Generic Drug Cases: Bloomberg

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Bloomberg News says that sources close to an almost four-year criminal investigation into alleged price-fixing by generic drug makers have indicated that at least two companies are likely to be indicted within coming months, in addition to several executives. The sources also said that another company could agree to plead guilty before the charges are filed. Bloomberg says the charges would mark a major breakthrough in the investigation that began in 2014 under the Obama administration and has spread to nearly every major generic drug manufacturer.

As part of the investigation, Bloomberg reports, federal authorities have raided at least two companies — Perrigo and Mylan.

“The Justice Department hasn’t announced any developments in the case, and no charges have been disclosed against any companies or individuals since two former executives of Heritage Pharmaceuticals were charged with colluding with other companies in 12/2016 and pleaded guilty,” the news service says. “In that case, the former CEO and the former president of Heritage conspired to fix prices and divide customers for an antibiotic, doxycycline hyclate, and for glyburide, a medicine used to treat diabetes, according to the Justice Department.”

The looming charges involve fixing prices and dividing the market, according to Bloomberg’s sources. In addition to the criminal case, generic drug manufacturers also are facing a civil complaint filed by state attorneys general led by Connecticut. That case accuses more than 12 companies of conspiring to raise prices on 15 drugs.

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