Federal lawsuit accuses prescription generic drug makers of price fixing

Kansas one of 20 states suing
Posted at 5:04 PM, Dec 16, 2016
and last updated 2016-12-16 18:33:58-05

Attorneys general in 20 states, including Kansas, are suing six prescription drug makers for price fixing.

The complaint, made public Thursday, alleges top employees of the drug companies conspired with each other in an effort to knock-out competition and raise the prices on generic drugs.

According to the lawsuit, "These schemes have the effect of reducing or eliminating competition for a particular drug, and have allowed the Defendants to maintain artificially supra-competitive prices in these markets throughout the United States."

The companies are accused of fixing the price on two drugs in particular: Doxycycline Hyclate Delayed Release and Glyburide. 

Doxycycline is used to treat acne, while Glyburide is a diabetes medication.

Heritage Pharmaceuticals is named as "ringleader" in the case. The lawsuit alleges that in 2014, Heritage employees held a meeting to discuss a price hike on various drugs. Glyburide, for instance, was slated for a 200 percent price increase. 



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