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From Antitrust Law Daily, May 24, 2017

Former generic drug company execs settle state antitrust action over pricing

By Jeffrey May, J.D.

A multi-state investigation into anticompetitive activity in the generic drug industry has netted two former executives of Heritage Pharmaceuticals, Inc. Jason Malek, the former president of Heritage, and Mr. Jeffrey Glazer, the company’s former chairman and chief executive officer, entered into settlement agreements with 41 states and territories. The settlements require Glazer and Malek to cooperate with the ongoing state investigation and to each pay a $25,000 civil penalty to the states. The two previously agreed to plead guilty to federal antitrust charges.

The State of Connecticut, which took the lead on the investigation, announced the settlements with Glazer and Malek today. The states contended that these executives participated in conspiracies to allocate customers and fix prices for the antibiotic doxycycline hyclate delayed release and for glyburide, a medicine used to treat diabetes. In a complaint filed in December 2016, 20 states alleged that generic drug-makers Heritage, Aurobindo Pharma USA, Inc., Citron Pharma, LLC, Mayne Pharma (USA), Inc., Mylan Pharmaceuticals, Inc. and Teva Pharmaceuticals USA, Inc. entered into conspiracies in order to unreasonably restrain trade, artificially inflate and manipulate prices, and reduce competition in the United States for these drugs.

Federal investigation. Glazer and Malek were the first to be charged in a U.S. Department of Justice Antitrust Division investigation involving similar allegations. The Justice Department announced plea agreements from Glazer and Malek in December 2016. At that time, the government said that the investigation was ongoing.

Attorneys: W. Joseph Nielsen, Assistant Attorney General, Office of the Connecticut Attorney General, for states. Thomas Mueller (WilmerHale) for Jeffrey Glazer. Michael B. Himmel (Lowenstein Sandler) for Jason Malek.

Companies: Heritage Pharmaceuticals, Inc.

MainStory: TopStory Antitrust ConnecticutNews AntitrustDivisionNews

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