Inside the generics price-fixing saga in the US

Events that transpired between a few companies in the US generics market may or may not be price-fixing 101. Court documents allow, for the first time, a peek into how it allegedly went down

Between 2013 and 2015, generics manufacturers sliced and diced the market for at least 15 drugs and fixed prices. Heritage was the ringleader

Mylan and Heritage employees allegedly exchanged phone calls, text messages and emails discussing Doxy DR in what may amount to textbook anti-competitive behaviour

These allegations were made in court filings last month in a landmark antitrust lawsuit filed by 46 US states against generics manufacturers

But generics manufacturers and their representatives say American authorities are using one bad apple—Heritage—to allege the entire cart is spoilt

In the spring of 2013, two businessmen from an American subsidiary of an Indian generics manufacturer travelled to Pune to visit their parent company, Emcure Pharmaceuticals. They met Satish Mehta, Emcure’s billionaire chief executive, to discuss the upcoming launch of a drug called Doxy DR.

Doxy DR (doxycycline hyclate delayed-release) is a simple molecule—a delayed-release antibiotic often prescribed for severe acne. The businessmen from New Jersey-based Heritage Pharmaceuticals wanted to manufacture this profitable drug.

The catch: The market was entirely cornered by Heritage’s competitor, Mylan N.V., so its entry had to be carefully orchestrated.

AUTHOR

Gayathri Vaidyanathan

Gayathri writes on health, environment and science. She has reported and produced stories for the Washington Post, Discover, Nature, and the New York Times, amongst other publications. In her last assignment, she was the lead science writer for E&E News in Washington, D.C. E&E News is a news organisation focused on energy and the environment. Over the past decade, Gayathri has travelled across North America, Africa and Asia on long-form reporting projects. She has a master’s in journalism from Columbia University and a bachelor's in biochemistry from McMaster University in Ontario. At The Ken, Gayathri will write on healthcare, the pharmaceutical business and the environment. Based in Bengaluru, you can reach her at gayathri at the rate the-ken.com

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