The Verdict - Napoli Shkolnik Newsletter - Special Cities Counties and Municipalities Edition

Page 4

“Every one of us at the firm works diligently to deliver on our mission statement to achieve results for our clients by providing excellent and compassionate client-focused service and outstanding legal representation.” Paul J. Napoli

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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