Teva Pharmaceutical’s US Arm Charged With Price-Fixing
The DOJ has accused the company of conspiring with other pharmaceutical firms to inflate common drug prices.
Late on Tuesday, the antitrust division of the US Department of Justice (DOJ) announced charges of price-fixing against Teva Pharmaceutical Industries. The charges follow a years-long investigation by the DOJ into allegations that Teva conspired with other drugmakers to artificially inflate the prices of generic and widely used drugs.
In the DOJ’s superseding indictment, filed in the US District Court for the Eastern District of Pennsylvania, Teva Pharmaceuticals USA Inc. was charged with three counts of conspiring with other companies including Taro Pharmaceutical Industries, Glenmark Pharmaceuticals, Apotex and Sandoz, a Novartis subsidiary.
In the first charge, Teva, Apotex and Glenmark are accused of conspiring to increase prices for pravastatin – a cholesterol-lowering drug – and other generic drugs. In the second, Teva is accused of colluding with Taro to raise prises, fix bids and allocate customers for various generic medications used to treat seizures, arthritis and other conditions. The third charge is similar, accusing Teva and Sandoz of conspiring to allocate customers for drugs to treat brain cancer, cystic fibrosis and other conditions.
According to the DOJ, Apotex, Taro and Sandoz have already admitted culpability and agreed to pay penalties for their roles in the conspiracies.
In a statement, Teva said that it “firmly rejects the allegations and will vigorously defend the Company in court.” Teva also said that it attempted to reach a resolution with the DOJ, but the organisation showed “an unwillingness to consider alternatives that would not deeply impact Teva and the stakeholders who depend on the Company, including the patients who benefit from our medicines.”
