Drugmakers conspired to raise the prices of prescription ointment, creams and other topical medication, said Ohio Attorney General Dave Yost. That’s why he’s joined 50 other states and territories and filed a lawsuit. The drugs named in this case are generic topical drugs. That would include anything that’s administered by contact.
Included on the list:
- Prescription shampoos
- Creams
- Gels
- Lotions
- Ointments
We’ve got details about the suit and a complete list of the drug manufacturers that took part in the conspiracy.
Widespread Conspiracy
If you’ve ever wondered why you had to pay $100 for a tube of ointment, check this out. Documents in the suit claimed that drug manufacturers were part of a widespread conspiracy to artificially raise and control drug prices. Further, it’s alleged that they worked to prevent competition and restrain trade.
“Price-fixing unlawfully benefits the producer at the expense of the patient,” Yost said. “In the absence of competition in the drug market, folks who most need medicine bear the brunt of the cost.”
Yost claimed they took part in a scheme that overcharged state, local, and federal governments as well as everyone who was issued a prescription.
26 Companies
The lawsuit focuses on 80 topical generic drugs. According to Yost the drug companies communicated directly and entered into long-standing agreements to raise prices and minimize competition. Between 2007 and 2014, three generic drug manufacturers, Taro, Perrigo, and Fougera (now Sandoz) sold nearly two-thirds of all generic topical products dispensed in the United States. Other generic manufacturers making up the remaining third of the market include Actavis, Mylan, Teva, G&W, and Glenmark.
Yost said there is a massive amount of evidence to prove the case:
- Several cooperating witnesses
- 20 million documents
- Phone records database with millions of calls
Accused Companies
The list of companies It is a long one. Yost also called 10 individuals named specifically in the lawsuit.
Corporate Defendants
- Sandoz, Inc.
- Actavis Holdco U.S., Inc.
- Amneal Pharmaceuticals, Inc.
- Actavis Elizabeth LLC
- Actavis Pharma, Inc.
- Amneal Pharmaceuticals, LLC
- Aurobindo Pharma USA, Inc.
- Bausch Health Americas, Inc.
- Bausch Health, US LLC
- Fougera Pharmaceuticals, Inc.
- G&W Laboratories, Inc.
- Glenmark Pharmaceuticals Inc., USA
- Greenstone LLC
- Lannett Company, Inc.
- Mallinckrodt Inc.
- Lupin Pharmaceuticals, Inc.
- Mallinckrodt plc
- Mallinckrodt LLC
- Mylan Inc.
- Mylan Pharmaceuticals Inc.
- Perrigo New York, Inc.
- Pfizer, Inc.
- Sun Pharmaceutical Industries, Inc.
- Taro Pharmaceuticals USA, Inc.
- Teligent, Inc.
- Wockhardt USA, LLC
Individual Defendants
Ara Aprahamian, the Vice President of Sales and Marketing at Defendant Taro Pharmaceuticals U.S.A, Inc.
Mitchell Blashinsky, the Vice President of Marketing for Generics at Defendant Taro Pharmaceuticals USA.
Douglas Boothe, the Chief Executive Officer of Defendant Actavis from August 2008 through December 2012 and the Executive Vice President and General Manager of Defendant PerrigoNew York, Inc. from January 2013 through July 2016.
James Grauso, the former Vice President of Sales and Marketing at Defendant G&W Laboratories from January 2010 through December 2011; the Senior Vice President, Commercial Operations for Defendant Aurobindo from December 2011 through January 2014; and the Executive Vice President, N.A. Commercial Operations at Defendant Glenmark from February 2014 to the present.
Walt Kaczmarek, the Senior Director, National Accounts, Vice President, National Accounts and Senior Vice President, Commercial Operations from November 2004 through November 2012 for Fougera Pharmaceuticals, a division of Nycomed US, Inc. (currently part of Defendant Sandoz, Inc.), and Vice President – General Manager, and President, Multi-Source Pharmaceuticals from November 2013 through August 2016 for Defendant Mallinckrodt.
Armando Kellum, the former Vice President, Contracting and Business Analytics at Sandoz.
Kurt Orlofski, the President and Chief Executive Officer from April 2007 through August 2009 for Defendant Wockhardt USA, and President of Defendant G&W Labs, Inc. from September 2009 through December 2016.
Mike Perfetto, the Vice President of Sales and Marketing for Defendant Actavis from August 2003 through January 2013, and the Chief Commercial Officer for Defendant Taro from January 2013 through his recent retirement from the company.
Erika Vogel-Baylor, the former Vice President for Sales and Marketing for Defendant G&W Labs, Inc. since July 2011.
John Wesolowski, the Senior Vice President of Commercial Operations for Defendant Perrigo since February 2004.