Delaware was one of 20 states that filed litigation in December 2016; 46 states and U.S. territories are now part.
Attorney Gen. Matt Denn and other attorneys general have significantly expanded the scope of a lawsuit against generic drug manufacturers alleging illegal price-fixing agreements.
The lawsuit, which now names two executives of the defendant companies, seeks action against 18 companies for price-fixing of drugs including generic antibiotics and generics used to treat epilepsy, high blood pressure and asthma.
The lawsuit alleges that the defendants illegally agreed to fix prices and allocate customers for a number of generic drugs. It also alleges that these conspiracies were part of a much broader, overarching industry code of conduct that enabled the defendant manufacturers to divvy up the market for specific generic drugs in accordance with an established, agreed-upon understanding for assigning each competitor their share of the market. This conduct has resulted in artificially inflated prices for generic drugs, which have impacted both government health care programs, such as Medicaid, and private insurance costs.
Delaware was one of 20 states that initially filed this litigation in December 2016. The number of states and U.S. territories that are now part of the litigation is 46.
The expanded complaint names two individual defendants: Rajiv Malik, president and executive director of Mylan N.V., which is the parent company of Mylan Pharmaceuticals, Inc.; and Satish Mehta, the chief executive officer and managing director of Emcure Pharmaceuticals Ltd., which is the parent company of Heritage Pharmaceuticals, Inc.
“Generic drugs make up 88 percent of the prescriptions written in the United States, and prescription drug costs are a significant part of the health care costs borne by Delawareans,” said Denn said. “It is critical that pharmaceutical companies follow the law when it comes to setting the prices for their products, and we will continue to work with other states to be vigilant in ensuring compliance by the pharmaceutical industry.”