Lawsuit alleges antitrust violations against drug manufacturers

(MGN Online)

LYNCHBURG, Va. (WSET) -- A multi-state lawsuit alleges antitrust violations against an antibiotic, an oral diabetes medication, and six generic drug manufacturers.

Companies are accused of fixing prices, coordinating schemes through direct interactions with competitors, and allocating markets among other assertions.

Those sued include Heritage Pharmaceuticals, Inc., Aurobindo Pharma USA, Inc., Citron Pharma, LLC, Mayne Pharma (USA), Inc., Mylan Pharmaceuticals, Inc. and Teva Pharmaceuticals USA, Inc.

“Failure to comply with antitrust laws hurts consumers and drives up prices,” West Virginia Attorney General Patrick Morrisey said. “The allegations raised in this lawsuit are troubling and will be pursued vigorously in court.”

The lawsuit alleges the companies violated the West Virginia Antitrust Act, which outlaws contracts or conspiracies for the purpose of fixing, controlling or maintaining market prices of any commodity or service.

It also followed an investigation into reasons behind price increases in certain generic pharmaceuticals.

The lawsuit also allegedly uncovered evidence of well-coordinated and long-running conspiracy to fix prices and allocate markets for doxycycline hyclate delayed release, an antibiotic, and glyburide, an oral diabetes medication.

West Virginia, Arkansas, D.C., Missouri, New Mexico, and Connecticut are included in the lawsuits.

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