Three pharmaceutical manufacturers have agreed to pay a combined total of $447.2 million to resolve alleged violations of the False Claims Act related to price-fixing conspiracies for several generic drugs, according to the US Department of Justice (DOJ).
The 3 companies—Apotex Corporation, Sandoz Inc, and Taro Pharmaceuticals USA, Inc,—allegedly caused drug prices to increase for federal health care programs and beneficiaries.
“Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs,” said Special Agent in Charge Maureen R. Dixon of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), in a statement.
“Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” she said. “HHS-OIG along with our law enforcement partners will continue to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
The government alleges that the 3 companies paid and received compensation through arrangements on price, supply, and customer allocation with other pharmaceutical manufacturers for certain generic drugs manufactured by the companies, which is not allowed under the Anti-Kickback Statute. That statute prohibits companies from making or receiving payments in return for arranging the purchase or sale of items, including drugs, for which...
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