Current Events > Drug companies allegedly fixed prices on hundreds of generic drugs

(+) Yeah! (+)

https://wapo.st/2Uxe6dJ

Executives at more than a dozen generic-drug companies had a form of shorthand to describe how they conducted business, insider lingo worked out over steak dinners, cocktail receptions and rounds of golf.

The sandbox, according to investigators, was the market for generic prescription drugs, where everyone was expected to play nice.

Fair share described dividing up the sales pie to ensure that each company reaped continued profits. Trashing the market was used when a competitor ignored these unwritten rules and sold drugs for less than agreed-upon prices.

The terminology reflected more than just the clubbiness of a powerful industry, according to authorities and several lawsuits. Officials from multiple states say these practices were central to illegal price-fixing schemes of massive proportion.

The lawsuit and related cases picked up steam last month when a federal judge ruled that more than 1 million emails, cellphone texts and other documents cited as evidence could be shared among all plaintiffs.

What started as an antitrust lawsuit brought by states over just two drugs in 2016 has exploded into an investigation of alleged price-fixing involving at least 16 companies and 300 drugs, Joseph Nielsen, an assistant attorney general and antitrust investigator in Connecticut who has been a leading force in the probe, said in an interview. His comments in an interview with The Washington Post represent the first public disclosure of the dramatically expanded scale of the investigation.

The unfolding case is rattling an industry that is portrayed in Washington as the white knight of American health care.

This is most likely the largest cartel in the history of the United States, Nielsen said. He cited the volume of drugs in the schemes, that they took place on American soil and the total number of companies involved, and individuals.

The alleged victims were American health-care consumers and taxpayers, who foot the bills for overcharges on common antibiotics, blood-pressure medications, arthritis treatments, anxiety pills and more, authorities say. The costs flowed throughout the system, hitting hospitals, pharmacists and health insurance companies. They hit consumers who lack prescription drug coverage and even those with insurance, because many plans have high deductibles and gaps on prescription drug benefits.

In just one instance of extraordinary cost spikes, the price of a decades-old drug to ease asthma symptoms, albuterol, sold by generic manufacturers Mylan and Sun, jumped more than 3,400 percent, from 13 cents a tablet to more than $4.70. The example is documented in a lawsuit brought against the generic industry by grocery chains including Kroger.

Everyone is paying the price, Nielsen said. He offered a single word to explain the behavior: Greed.

While precise estimates of alleged overcharges have not been released, generic-industry sales were about $104 billion in 2017. Excessive billings of even a small fraction of annual sales over several years would equal billions of dollars in added costs to consumers, according to investigators.

Generic manufacturers reject the accusations. They contend officials lack evidence of a conspiracy and have failed to prove anti-competitive behavior.

Among the 16 companies accused are some of the biggest names in generic manufacturing: Mylan, Teva and Dr. Reddys. Mylan denied wrongdoing in an emailed statement. Sun, Teva and Dr. Reddys did not respond to requests for comment. In a court filing, Teva said allegations of a price-fixing conspiracy are entirely conclusory and devoid of any facts.

Healthy system
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Kill Big Pharma
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literally the opposite of a free market
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Pull yourself up by your bootstraps and assume the position!
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Antifar posted...

In just one instance of extraordinary cost spikes, the price of a decades-old drug to ease asthma symptoms, albuterol,

Can confirm, my mom can't afford this anymore. It used to be like 5 bucks per inhaler. No reason it isn't still that cheap.
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Watch free marketers defend this
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Thanks, Obama.
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Wheres Proudclad

pinky0926 posted...

Watch free marketers defend this

its not free market though. its using a free market for your evil shitty corporate greed to commit collusion.
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Oh my gosh I would have never guessed that! /s
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Manocheese posted...

Thanks, Obama.

tbh I can never tell if your posts in these topics are meant to be ironic or if you're actually crazy enough to believe them.
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spudger posted...

pinky0926 posted...

Watch free marketers defend this

its not free market though. its using a free market for your evil shitty corporate greed to commit collusion.

Don't worry, we just need a competitor to come along, beat them with a better product and have consumers flock to the new thing

Let's wait for market forces to correct this
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The goal of any capitalist entity is to control their market. Competition in a market is less profitable than having a monopoly.

pinky0926 posted...

spudger posted...

pinky0926 posted...

Watch free marketers defend this

its not free market though. its using a free market for your evil shitty corporate greed to commit collusion.

Don't worry, we just need a competitor to come along, beat them with a better product and have consumers flock to the new thing

Let's wait for market forces to correct this

in the case of big pharma you're right. its corrupt and needs to be controlled. leaving it to the market to regulate itself obvious isn't working.

its just sad, because it could work wonderfully and drive innovation if even one of those fucks could be decent.
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Trump said big pharma was gonna lower all drug costs so quick hmm
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Rise up and sieze the means of drug production.
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End the reimportation ban, and the problem will solve itself pretty quickly.

How can anyone call the healthcare industry or any aspect of it a free market with a straight face?
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Questionmarktarius posted...

End the reimportation ban, and the problem will solve itself pretty quickly.

Yes. It's regulations like this that make it so much easier for companies to play unfair. Free market my ass.
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Antifar posted...

https://wapo.st/2Uxe6dJ

Executives at more than a dozen generic-drug companies had a form of shorthand to describe how they conducted business, insider lingo worked out over steak dinners, cocktail receptions and rounds of golf.

The sandbox, according to investigators, was the market for generic prescription drugs, where everyone was expected to play nice.

Fair share described dividing up the sales pie to ensure that each company reaped continued profits. Trashing the market was used when a competitor ignored these unwritten rules and sold drugs for less than agreed-upon prices.

The terminology reflected more than just the clubbiness of a powerful industry, according to authorities and several lawsuits. Officials from multiple states say these practices were central to illegal price-fixing schemes of massive proportion.

The lawsuit and related cases picked up steam last month when a federal judge ruled that more than 1 million emails, cellphone texts and other documents cited as evidence could be shared among all plaintiffs.

What started as an antitrust lawsuit brought by states over just two drugs in 2016 has exploded into an investigation of alleged price-fixing involving at least 16 companies and 300 drugs, Joseph Nielsen, an assistant attorney general and antitrust investigator in Connecticut who has been a leading force in the probe, said in an interview. His comments in an interview with The Washington Post represent the first public disclosure of the dramatically expanded scale of the investigation.

The unfolding case is rattling an industry that is portrayed in Washington as the white knight of American health care.

This is most likely the largest cartel in the history of the United States, Nielsen said. He cited the volume of drugs in the schemes, that they took place on American soil and the total number of companies involved, and individuals.

The alleged victims were American health-care consumers and taxpayers, who foot the bills for overcharges on common antibiotics, blood-pressure medications, arthritis treatments, anxiety pills and more, authorities say. The costs flowed throughout the system, hitting hospitals, pharmacists and health insurance companies. They hit consumers who lack prescription drug coverage and even those with insurance, because many plans have high deductibles and gaps on prescription drug benefits.

In just one instance of extraordinary cost spikes, the price of a decades-old drug to ease asthma symptoms, albuterol, sold by generic manufacturers Mylan and Sun, jumped more than 3,400 percent, from 13 cents a tablet to more than $4.70. The example is documented in a lawsuit brought against the generic industry by grocery chains including Kroger.

Everyone is paying the price, Nielsen said. He offered a single word to explain the behavior: Greed.

While precise estimates of alleged overcharges have not been released, generic-industry sales were about $104 billion in 2017. Excessive billings of even a small fraction of annual sales over several years would equal billions of dollars in added costs to consumers, according to investigators.

Generic manufacturers reject the accusations. They contend officials lack evidence of a conspiracy and have failed to prove anti-competitive behavior.

Among the 16 companies accused are some of the biggest names in generic manufacturing: Mylan, Teva and Dr. Reddys. Mylan denied wrongdoing in an emailed statement. Sun, Teva and Dr. Reddys did not respond to requests for comment. In a court filing, Teva said allegations of a price-fixing conspiracy are entirely conclusory and devoid of any facts.

Healthy system

Yeah it's almost like people whose only guide is profit motive are going to use every shitty, shady way they can to increase profits for shareholders. Nah who am I kidding, the frww market can be trusted to regulate itself.
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ScazarMeltex posted...

Yeah it's almost like people whose only guide is profit motive are going to use every shitty, shady way they can to increase profits for shareholders. Nah who am I kidding, the frww market can be trusted to regulate itself.

HenryAllbright posted...

How can anyone call the healthcare industry or any aspect of it a free market with a straight face?

HenryAllbright posted...

Questionmarktarius posted...

End the reimportation ban, and the problem will solve itself pretty quickly.

Yes. It's regulations like this that make it so much easier for companies to play unfair. Free market my ass.

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ScazarMeltex posted...

Nah who am I kidding, the frww market can be trusted to regulate itself.

What's actually happening is the rough equivalent of crying to mommy, who then shouts back "goddammit, let your brother win!"

Regulations are not actually for the end consumer. They're just dressed that way.

Sen Joe Manchin's daughter is the CEO of Mylan, the company that gouged EpiPens.
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slowpokebreakingnews.jpg
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DarkRoast posted...

Sen Joe Manchin's daughter is the CEO of Mylan, the company that gouged EpiPens.

This doesn't get enough attention
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P4wn4g3 posted...

DarkRoast posted...

Sen Joe Manchin's daughter is the CEO of Mylan, the company that gouged EpiPens.

This doesn't get enough attention

Because it's the wrong party
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DarkRoast posted...

P4wn4g3 posted...

DarkRoast posted...

Sen Joe Manchin's daughter is the CEO of Mylan, the company that gouged EpiPens.

This doesn't get enough attention

Because it's the wrong party

Maybe. Idk
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If there's anything Democrats love, it's Joe Manchin
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Antifar posted...

If there's anything Democrats love, it's Joe Manchin

Oh, don't go there.

Just own it. Both parties are so in bed with Big Pharma, they need STD checks daily.
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Oh absolutely.
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Call me a commie, but health care should not be allowed to be a for-profit business.
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WilliamPorygon posted...

Call me a commie, but health care should not be allowed to be a for-profit business.

You realize nonprofit hospitals often make more money than for profit hospitals, right?
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The issue isn't really that people make money providing Healthcare. Many nurses go into the field because it's a specialty that's needed everywhere and it will always provide at least a moderate income. They help people and can make a decent living out of it.

Different story when you're talking about a shady businessman who comes to your door and says "We can treat you but it will cost 3000 bucks a month. You may have some side effects. Don't bother looking for alternatives, we've spent a small fortune putting those out of business."
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Blue_Inigo posted...

Kill Big Pharma

https://www.youtube.com/watch?v=xs0e6mJif5c" data-time="
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P4wn4g3 posted...

The issue isn't really that people make money providing Healthcare. Many nurses go into the field because it's a specialty that's needed everywhere and it will always provide at least a moderate income. They help people and can make a decent living out of it.

Different story when you're talking about a shady businessman who comes to your door and says "We can treat you but it will cost 3000 bucks a month. You may have some side effects. Don't bother looking for alternatives, we've spent a small fortune putting those out of business."

In all fairness, 99.9% of alternative medicine is snake oil bullshit with the added advantage of not needing FDA approval.
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DarkRoast posted...

P4wn4g3 posted...

The issue isn't really that people make money providing Healthcare. Many nurses go into the field because it's a specialty that's needed everywhere and it will always provide at least a moderate income. They help people and can make a decent living out of it.

Different story when you're talking about a shady businessman who comes to your door and says "We can treat you but it will cost 3000 bucks a month. You may have some side effects. Don't bother looking for alternatives, we've spent a small fortune putting those out of business."

In all fairness, 99.9% of alternative medicine is snake oil bullshit with the added advantage of not needing FDA approval.

This is without adding in alternative medicine or supplement concoctions or whatever.
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