Mylan Faces $100M Price Fixing Penalty
The Federal Trade Commission yesterday approved a tentative $100 million settlement against Mylan Laboratories Inc. for lawsuits that charged the drug manufacturer with fixing prices of antianxiety drugs commonly used by senior citizens, the AP/Nando Times reports. In 1998, the federal government, patients, 32 states and the District of Columbia filed lawsuits accusing Pittsburgh, Pa.-based Mylan of illegally raising prices for clorazepete and lorazepam, medications used to treat certain illnesses including Alzheimer's disease. Mylan was also accused of eliminating competition by signing an "exclusive" agreement with Milan, Italy-based supplier Profarmaco S.R.L., leaving Mylan's competitors struggling to find other suppliers. In addition, the FTC contended that Mylan, Profarmaco, Cambrex Corp. and Gyma Laboratories of America "worked" to deprive Mylan's competitors of the active ingredient of the two drugs. The settlement, the largest in FTC history, awaits approval by attorneys general in the 32 states and U.S. District Judge Thomas Hogan. If approved, the $100 million will be divided among the states to be distributed among consumers and state agencies that were overcharged for the medications (AP/Nando Times, 11/29).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.