Lawsuit: Pharma Companies Conspired to Fix Generic Drug Prices

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Another antitrust lawsuit has been filed against Mylan Inc., its subsidiary, Sandoz, Inc., and Taro Pharmaceuticals USA Inc. claiming that the pharmaceutical companies conspired to fix the price of generic chlomipramine hydrochloride, a drug used to treat obsessive compulsive disorder. The suit argues that the price of the medication was artificially inflated by 1,360% to 2,550% since 2012, absent changes to the market or increased demand. The complaint further claims that the defendants comprised 98% of the total market for generic chlomipramine hydrochloride in 2014. According to the lawsuit, “the sudden, unexplained and sustained price increase can be reasonably inferred to be caused by anticompetitive behavior by the generic manufacturers.”

The plaintiff claims the companies held “secret, conspiratorial meetings, discussions and communications” to unlawfully raise the price of the generic drug. The suit argues that the defendants’ decision to “meet rather than to compete” caused harm to consumers who depend on the drug and were forced to pay an artificially inflated price for it. Several other lawsuits have been filed over similar allegations involving various generic drugs, the suit says.