Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is one of six companies being named as part of a price fixing scandal in the U.S.
The conspiracy names a slate of companies in a civil lawsuit filed on Thursday that mentions two generic drugs. Mylan Inc (NASDAQ:MYL) was also named as part of the travesty, which allegedly took place in 20 states.
Mayne Pharma Group Ltd from Australia, Heritage Pharmaceuticals Inc., Aurobindo Pharma and Citron Pharma LLC were the other companies in the suit, which was filed with the U.S. District Court and the District of Connecticut.
The price fixing fiasco allegedly saw Heritage take the lead in organizing a “series of conspiracies” to fix drug prices. Part of what the companies conspired to do was delay the release version of a doxycycline hyclate, which is a common antibiotic.
Diabetes drug glyburide and its price was also rigged as part of the conspiracy. High-ranking executive have been named in the suit, as they allegedly worked the market by inflating prices.
New York Attorney General Eric Schneiderman noted that companies that are involved in price fixing should be held accountable for their actions as there are many who are unable to pay for these drugs. There are people who are unable to survive their day-to-day life without these pharma products.
TEVA shares fell 0.8% Thursday, while MYL stock remained flat.
