Price Rise Brings Downfall of US Drugmakers; Sued by 44 States

Drugmakers

This post was last updated on September 12th, 2019 at 01:32 pm

The soaring prices of drugs leading to regular customers facing unaffordability has led to 44 US states filing a lawsuit against drugmakers. The move initiated by US states in large numbers accused companies of inflating prices, sometimes by more than 1,000 percent. The lawsuit also included name of a prominent drugmaker Teva Pharmaceuticals USA Inc.

As per the lawsuit filed, the oligarchy of 20 drug companies has illegally divided the market to restrict the level of competition in the market. Revolving around Teva, the complaint also states how the pharmaceutical company acted as a catalyst, provoking to multiply the prices of 86 drugs between July 2013 and January 2015.

The rise in the prices has been continuous, and has also invited criticism from both sides of the House. From President Donald Trump, to potential Presidency candidate US senator Elizabeth Warren, almost everyone has stated dissatisfaction with the ongoing hike.

However, a representative of Teva USA, a unit of Israeli company Teva Pharmaceutical Industries Ltd, said it will fight the lawsuit.

“The allegations in this new complaint, and in the litigation more generally, are just that – allegations.” “Teva continues to review the issue internally and has not engaged in any conduct that would lead to civil or criminal liability,” the representative added.

The lawsuit filed against the drugmakers also highlights the violation of US’ antitrust law, which overlooks to protect consumers by ensuring that fair competition exists in the open-market economy.

The 500-page lawsuit accuses the generic drug industry, which mainly sells medicine that are off patent and should be less expensive. This includes prices of tablets and capsules, to creams and ointments and to treat conditions such diabetes, high blood pressure and cancer etc.

As claims state, the pharmaceutical company was “Apparently unsatisfied with the status quo of ‘fair share’ and the mere avoidance of price erosion, Teva and its co-conspirators (thus) embarked on one of the most egregious and damaging price-fixing conspiracies in the history of the United States.”

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