🚀 ProPicks AI Hits +34.9% Return!Read Now

U.S. lawmakers press Heritage Pharma on high prices for antibiotic

Published 17/12/2016, 09:05 am
© Reuters.  U.S. lawmakers press Heritage Pharma on high prices for antibiotic
TEVA
-
VTRS
-
ARBN
-
MYX
-

By Sarah N. Lynch

WASHINGTON, Dec 16 (Reuters) - Two U.S. lawmakers are questioning whether Heritage Pharmaceuticals misled them in response to a 2014 congressional inquiry about the rising price a common antibiotic, after 20 U.S. states this week accused the company of price fixing.

In a Dec. 16 letter to Heritage seen by Reuters, Maryland Democratic Representative Elijah Cummings and Vermont Independent Senator Bernie Sanders said they feared the company was "disingenuous at best" in October 2014 when it told them it had not seen any significant price increases for its doxycycline hyclate product.

"We are very concerned that you made these assertions to Congress on behalf of Heritage during the exact time period that its executives were engaged in a price fixing scheme to prevent competition from driving down prices of doxycycline hyclate," they wrote.

A spokesman for the company did not immediately respond to a request for comment on the letter.

The letter to Heritage comes after criminal and civil charges were filed by the Justice Department and 20 states in connection with an alleged price fixing scheme involving doxycycline hyclate and glyburide, a diabetes drug.

On Wednesday, the Justice Department criminally charged Heritage's former Chief Executive Officer Jeffrey Glazer and former Heritage Vice President of Commercial Operations Jason Malek, accusing them of colluding with other generic manufacturers in schemes that entailed allocating market share and conspiring to raise prices. next day, 20 states filed a parallel civil lawsuit against Heritage, along with Mylan NV MYL.O , Teva Pharmaceuticals TEVA.TA , Mayne Pharma Group MYX.AX , Citron Pharma and Aurobindo Pharma Ltd. ARBN.NS , saying they colluded to fix prices. lawsuit characterized Heritage as the "ringleader," with Glazer and Malek overseeing and running the scheme.

Mylan and Teva have previously denied the states' civil charges.

Sanders and Cummings launched a congressional inquiry into rising generic drug prices on Oct. 2, 2014, including the price of doxycycline hyclate.

As part of that, they sent a letter to Glazer while he was still CEO of Heritage to inquire about the prices.

Gary Ruckelshaus, who was then Heritage's outside counsel and now serves as vice president and general counsel, responded later that month and said Heritage "has not seen any significant price increases" for the drug.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.