DOJ Gestapo Goose-Steps Over FTC to Hunt Down Generic-Pharma

In an unusual move, recent price hikes has two generic drug makers under Federal investigation by the United States Department of Justice Antitrust Division (DOJ) instead of the Federal Trade Commission’s Bureau of Competition (FTC) signaling this is a ‘criminal’ investigation. According to legal experts, the FTC does not have criminal enforcement authority.

Employees at both Lannett (court filing HERE) and Impax Laboratories (court filing HERE) have been served with served with a grand jury subpoenas for possible violations of anti-trust laws.

IMAGE SOURCE: Screenshot of filing taken from U.S. Securities and Exchange Commission

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IMAGE SOURCE: Screenshot of filing taken from U.S. Securities and Exchange Commission

Major Price Increases

One drug in question is Digoxin, a medication used for patients with Congestive Heart Failure (CHF) and rapid (heart) rhythm disturbances; a drug that is on the World Health Organization’s list of essential medicines.

According to the Wall Street Journal (WSJ),

Digoxin has been cited as an example of a sudden spike in prices for some generic drugs, which are traditionally lower-cost alternatives to brand-name medicines and, therefore, are widely prescribed. About 86% of all prescriptions filled in the U.S. are for generic drugs, according to a report by the IMS Institute for Healthcare Informatics.

Impax and Lannett are two of the manufacturers that sell the medicine in the U.S.

This past summer the NY Times reported on the sudden price hikes of Digoxin,

The three companies selling the drug in the United States had increased the price they charge pharmacies, at least nearly doubling it since late last year, according to EvaluatePharma, a London-based consulting firm.

Consequences of any antitrust investigation are significant, but when the conduct is deemed ‘criminal’ the stakes are much higher.

What Is An Antitrust Law?

This easy to follow video will give you a brief overview of what an antitrust law is.

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