CONFIRMEDHealth & PharmaThe Department of Justice confirmed that major generic drug manufacturers engaged in systematic price-fixing, bid-rigging, and customer allocation conspiracies affecting generic medications. Companies paid over a quarter billion dollars in fines.
“The Department of Justice confirmed that major generic drug manufacturers engaged in systematic price-fixing, bid-rigging, and customer allocation conspiracies affecting generic medications. Companies paid over a quarter billion dollars in fines.”
For years, anyone who suggested that drug companies were colluding to fix prices was labeled a conspiracy theorist. Then the DOJ proved it.
The Department of Justice investigation revealed that major generic drug manufacturers engaged in systematic price-fixing, bid-rigging, and customer allocation schemes. Companies colluded to keep generic drug prices artificially high — defeating the entire purpose of generic medications.
Companies paid over a quarter billion dollars in fines. A ScienceDirect study documented the breadth of collusion across the generic drug industry. But critics argue the fines represent a fraction of the profits made from price-fixing.
Generic drugs are supposed to make medication affordable. Instead, the companies that manufacture them were running a cartel, and patients were paying inflated prices for medications that should have been cheap.
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