Recent investigations reveal major price fixing in the generic drug sector, drastically increasing costs to consumers looking to save money.
This past January, Jeffrey Glazer, the CEO of Heritage Pharmaceuticals, a subsidiary of Indian drug company Emcure Pharmaceuticals, pleaded guilty to violating US antitrust law by conspiring with manufacturers to fix the prices of generic drugs. Glazer is reportedly cooperating with federal prosecutors, which might implicate Emcure’s CEO, Satish Mehta, in the price fixing scheme.
Heritage Pharmaceutical allegedly coordinated with its major competitors to hike the price of glyburide, a diabetes medication, by 200%.
The generics business is, of course, supposed to save consumers money by cutting prices of expensive patent medications. Generics save consumers an estimated $227 billion each year. But stories like this suggest that the generics business is not immune to the same market-fixing inclinations as their colleagues in the patent pharmaceutical sector.
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