US Big Pharma Must Face Dermatology Antitrust Case

Pharmaceutical companies Mylan NV, Pfizer, and other pharmaceutical companies lost their bid to end antitrust litigation brought by nearly every state attorney general over an alleged industrywide scheme to inflate the cost of generic dermatology products, reported Bloomberg. 

The ruling by US District Judge Claire Cecchi in Newark, New Jersey, means the companies must face claims they violated state laws by secretly agreeing not to compete to sell drugs used to treat acne, psoriasis, and other conditions.

The attorney generals accused the companies of conspiring to keep prices for the drugs artificially high. They said the companies agreed to divide the market among themselves and not compete on price.

Related: UK Fines Big Pharma Over Drug Prices

The lawsuit was first filed back in April 2016 and arises out of an alleged price-fixing conspiracy by the defendants, which include numerous major pharmaceutical companies such as Mylan, Pfizer, and Teva Pharmaceuticals, along with individual executives of the companies. 

The lawsuit was filed on behalf of the attorney general of the states of Arizona, Connecticut, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Mexico, North Dakota, Oregon, Rhode Island and Vermont, as well as the District of Columbia.

The lawsuit claims that the defendants conspired to fix prices, allocate customers, and engage in other anticompetitive conduct in relation to generic dermatology drugs. The lawsuit is seeking to recover the damages which were caused by the alleged illegal activities.