Compliance Today (November 2020)

An ongoing U.S. Department of Justice (DOJ) investigation into price-fixing, bid-rigging, and other antitrust behavior in the pharmaceutical industry has resulted in seven companies being charged, including Teva Pharmaceuticals USA Inc. (Teva), one of the largest players in the industry.^[1]

According to a DOJ news release, Teva conspired to raise prices and rig bids with coconspirators Glenmark Pharmaceuticals Inc., USA (Glenmark), Apotex Corp. (Apotex), and others. “Consumers were allegedly overcharged at least $350 million” in antitrust and anticompetitive actions that took place as early as May 2013.

‘Today’s charge reaffirms that no company is too big to be prosecuted for its role in conspiracies that led to substantially higher prices for generic drugs relied on by millions of Americans,’ said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. ‘The division will continue to work closely with our law enforcement partners to ensure that companies that blatantly cheat consumers of the benefits of free markets are prosecuted to the full extent of the law.’

Taro Pharmaceuticals U.S.A. Inc.^[2] was also caught up in the investigation, and this is not the first charge levied at Glenmark.^[3]

1 DOJ, “Seventh Generic Drug Manufacturer Is Charged In Ongoing Criminal Antitrust Investigation,” news release, August 25, 2020, https://bit.ly/2QM1SwZ.
2 DOJ, “Sixth Pharmaceutical Company Charged In Ongoing Criminal Antitrust Investigation,” news release, July 23, 2020, https://bit.ly/2YPzeQg.
3 DOJ, “Fifth Pharmaceutical Company Charged In Ongoing Criminal Antitrust Investigation,” news release, June 30, 2020, https://bit.ly/3hFFkdg.

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