The Drug Price-Fixing Probe Is Just the Beginning (MYL, TEVA)

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The Drug Price-Fixing Probe Is Just the Beginning (MYL, TEVA)

By Iris Dorbian | December 19, 2016 — 3:00 AM EST

Mylan N.V. (MYL), Teva Pharma (TEVA) and several other generic drugmakers have been charged by 20 states with illegally inflating prices of an antibiotic and a diabetes drug. It's an investigation that could have wide-reaching implications. And it's not confined to just this one case, either.

Drug-Fixing Probe: "Tip of the Iceberg"
Speaking to the New York Times, George C. Jepsen, Connecticut's Attorney General, said, “We believe that this is just the tip of the iceberg.” (For more, see also: Bernie Sanders Slams Drug Price Fixing.)

Among the drugmakers named in the probe is Heritage Pharmaceuticals, which has also been implicated in a separate probe after federal prosecutors charged two former executives Jeffrey Glazer and Jason Malek in a price-fixing scheme earlier in the week. Heritage is suing both men, claiming they "looted" tens of millions of dollars from the company as a result of their reported illegal drug-pricing deals.

According to Bloomberg News, both men are preparing to plead guilty to the charges and will reportedly cooperate with federal prosecutors investigating "widespread collusion among drug manufacturers" when it comes to illegally inflating prices of generic drugs...


Read more:
http://www.investopedia.com/news/drug-pricefixing-probe-just-beginning-myl-teva/