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GENERIC DRUG ANTITRUST LITIGATION In 2014, the Department of Justice began an inves-
the initial investigation, pleaded guilty to fixing prices for two generic drugs, doxycycline and glyburide, and agreed to cooperate.
tigation into the pricing of various generic pharma-
In the wake of the Federal investigation, the state at-
ceuticals. In particular, the DOJ has been investigat-
torneys’ general of 47 states brought a civil action al-
ing price fixing and market allocation agreements
leging price fixing, market division, and other antitrust
involving numerous generic pharmaceutical prod-
violations by 16 defendant pharmaceutical companies
ucts, including doxycycline, an antibiotic, and glybu-
related to fifteen (15) generic prescription drugs. As al-
ride, a treatment for diabetes. Many drug companies,
leged, Defendants’ anticompetitive conduct falls prin-
including Teva, Mylan, Heritage Pharmaceuticals,
cipally into two categories, First, to avoid competing
Dr. Reddy’s, and Allergan, have been the subject of
with one another and thus eroding the prices for a
the investigation. The DOJ investigation has grown
myriad of generic drugs, Defendants — either upon
and presently includes at least 16 companies and
their entry into a given generic market or upon the
300 drugs, plus almost every state attorney general
entry of a new competitor into that market — com-
and federal law enforcement. In early 2017, Jeffrey
municated with each other to determine and agree
Glatzer and Jason Malek, two executives of Heritage
on how much market share each would control and
Pharmaceuticals, the company that was the focus of
which customers each competitor was entitled to.
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