US Justice Department subpoenas Taro over generic drug pricing - (CNBC via NewsPoints Desk)

  • The US Justice Department has subpoenaed Taro Pharmaceutical and two senior company officials requesting information about the drugmaker's pricing practices, as reported CNBC Monday.

  • Specifically, the subpoenas demanded documents related to "corporate and employee records, generic pharmaceutical products and pricing" and the drugmaker's "communications with competitors and others" concerning the sale of generic products.

  • "Taro intends to respond to the subpoena and otherwise cooperate with the Department of Justice investigation," the company said.

  • A 2015 report found that Taro raised the prices of several generic drugs, including a jump in the price of clobetasol from $0.26 per gram to $4.15 per gram.

  • The news comes after Valeant Pharmaceuticals and Turing Pharmaceuticals were investigated by Congress over price hikes for older products.

  • Meanwhile, Mylan has recently received scrutiny for price increases for EpiPen, which prompted US presidential candidate Hillary Clinton to propose the creation of a panel to monitor drug pricing.

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