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Sun pharma, Dr Reddys, others deny allegations of price fixing in US


Sun pharma, Dr Reddys, others deny allegations of price fixing in US

In separate clarifications to stock exchanges, the companies including Glenmark, Sun Pharma, Dr Reddy’s, Aurobindo Pharma denied the accusations and stated they would defend themselves in the matter. 

New Delhi: The homegrown drugmakers including Dr Reddy’s, Wockhardt, Aurobindo, Glenmark and Sun Pharma named in an anti-trust lawsuit in the US has recently denied allegations of engaging in a conspiracy to fix prices.

Medical Dialogues had earlier reported that in a major setback, a group of domestic pharmaceutical companies including Zydus Cadila, Lupin, Aurobindo Pharma, Dr Reddy’s Labs, Wockhardt, Glenmark, Sun Pharma were in a soup as 40 US states had filed legal proceedings against these pharma majors.

Also Read: Inflated prices to 1000 per cent; Lupin, Sun Pharma, Dr Reddys, others face lawsuit

The domestic drugmakers are among the 21 generic pharmaceutical firms and 15 other individual defendants against whom the Attorneys General of 49 US states, the Commonwealth of Puerto Rico and the District of Columbia had filed a complaint with respect to 116 generic drugs in the US District Court for the District of Connecticut.

The companies have been accused of violating antitrust laws by fixing prices and allocating customers.

In separate clarifications to stock exchanges, the companies denied the accusations and stated they would defend themselves in the matter.

Dr Reddy’s said, “We intend to vigorously defend against these allegations and are in the process of filing our response with the District Court of Connecticut.”

According to a report by PTI, the company said its US subsidiary is specifically named as a defendant with respect to five generic drugs (Ciprofloxacin HCL tablets, Glimepiride tablets, Oxaprozin tablets, Paricalcitol and Tizanidine), for an alleged “overarching conspiracy”.

It further said, “Currently, we do not foresee any material impact to our operations and consolidated results with respect to this matter.”

Sun Pharma in a regulatory filing said that its subsidiary Taro Pharmaceuticals USA Inc has been named in the second lawsuit filed by the states. “The allegations made in these lawsuits are without merit and our concerned subsidiaries will continue to vigorously defend against them,” the company said in its clarification to stock exchanges over a news article.

Sun Pharmaceutical Industries Limited has not been named in these litigations, the drug major clarified.

Wockhardt also said anti-trust action relates to the price hike of various generic drugs. The company has denied such accusation at appropriate Forum and is vigorously defending against the matter.

Similarly, Glenmark said in December 2016 a similar lawsuit was filed and the latest one includes some of the parties from the first one as well as additional parties with allegations of fixing prices of additional products which were not referenced in the first lawsuit, suggest a report by PTI.

“While the company is currently reviewing the second suit, we expect to file papers with the Federal Court in due course denying the accusations. Given the early nature of the matter, the company does not anticipate the material impact of the same,” Glenmark added.

Aurobindo Pharma also said it is currently reviewing the second anti-trust lawsuit.

“We expect that we will be filing papers with the Federal Court in due course denying each of the relevant accusations. Aurobindo does not, at this time, anticipate that these matters will have a material impact on the Company’s operations or business results,” it added.



Source: with inputs
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