A lawsuit filed by more than 40 attorneys general allege that Mylan, Novartis' Sandoz unit and Taro Pharmaceuticals of colluding to fix the price of clomipramine, Bloomberg reported Wednesday.
The lawsuit described the case as "one of the most egregious and damaging price-fixing conspiracies" in US history.
Meanwhile, data from Connecture revealed that Taro first raised the price of clomipramine from $0.85 per tablet to $11.24 per tablet on May 1, 2013, while Sandoz and Mylan, which were allegedly in close communication with Taro, raised their prices to the exact same level several weeks later.
Later that year, Mylan rejected an offer from Walgreen's to bid on supplying the treatment, with a Mylan executive stating "that is tempting but I worry very disruptive."
According to SVB Leerink, Mylan generated $422 million in additional revenue based off the price hike, while Medicare spending on the treatment rose from $3 million and $4 million a year between 2010 and 2012 to about $77 million per year since the price hikes.
Commenting on the news, a Mylan spokesperson said the lawsuit "consists of unproven allegations" that "will prove meritless when examined in the court of law," while a Novartis representative asserted that the "cases are without merit, and we will vigorously contest them."
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