Former Heritage Pharmaceuticals Execs Admit to Price Fixing

Government Continues to Focus on Generic Drug Industry

Since early December of 2016, we’ve been tracking federal price fixing charges brought against two ex-pharmaceutical executives – Jeffrey Glazer and Jason Malek – both formerly of Heritage Pharmaceuticals.  On January 9, 2017, the two entered guilty pleas in federal court, making them the first to fall in the U.S. Department of Justice’s (DOJ) broad and ongoing investigation into the generic drug industry.

Glazer and Malek will be sentenced in April and face up to 10 years in prison following their admission to conspiring in the manipulation of prices for two generic drugs, one a diabetes medication and the other a widely-prescribed antibiotic.

The pleas may represent just the tip of the iceberg, as both the DOJ and a number of states pursue active investigations into the $75 billion a year generic drug market. Glazer and Malek are believed to be cooperating with investigators, which may not bode well for some of the drug companies named in a lawsuit filed in December by 20 states against a number of generic drugmakers, including Heritage Pharmaceuticals Inc., Aurobindo Pharma USA Inc., Mayne Pharma Inc. and Mylan Pharmaceuticals Inc., all of which are alleged to have participated in a widespread conspiracy to reduce competition and inflate prices for the same antibiotic and diabetes drugs involved in the Glazer and Malek cases. We addressed the details of those allegations in our December 16, 2016 alert, which you can find HERE.

In addition, it appears that there is no relief on the horizon for drug companies with the incoming Trump administration. On January 11, President-Elect Donald Trump spoke out against the rising cost of drugs in his first post-election press conference.

“Our drug industry has been disastrous,” said Trump. He added that drug makers must be subject to “new bidding procedures because they’re getting away with murder.”

 

The FisherBroyles Pharmacy and Health Care Law team will continue to follow the ongoing investigation and communicate updates as warranted. We welcome your questions. Please contact any one of the following attorneys:

Amy Butler, FisherBroyles Partner
Amy Butler
amy.butler@fisherbroyles.legal
419.340.8466
Cleveland (Toledo Branch), Chicago, Detroit Offices

Anthony Calamunci, FisherBroyles Partner
Anthony Calamunci
Anthony.calaunci@fisherbroyles.legal
419.376.1776
Cleveland (Toledo Branch), Chicago, Detroit and New York Offices

Brian Dickerson, FisherBroyles Partner
Brian E. Dickerson
brian.dickerson@fisherbroyles.legal
202.570.0248
Naples and Washington D.C. Offices

Nicole Waid, FisherBroyles Partner
Nicole Hughes Waid
nicole.waid@fisherbroyles.legal
202.906.9572
Naples and Washington D.C. Offices

Katy Wane, FisherBroyles Partner
Katy Wane
Katy.wane@fisherbroyles.legal
502-890-5920
Cincinnati Office