News Headlines Article

Probe Into Generic Drug Price Fixing Set To Widen
National Public Radio

Forty-five states and the Department of Justice are claiming that generic drug prices are fixed, and the alleged collusion may have cost U.S. business and consumers more than $1 billion.

In their complaint, prosecutors say that when pharmacies asked drug makers for their lowest price, the manufactures would rig the bidding process.

“The companies would work out in advance who would get the lowest price and then the other competitors may put in what we would call a cover bid,” says Michael Cole, who heads the antitrust department at the Connecticut Attorney General’s office. (Such bids give the appearance of competitive bidding.)