Drugmakers' Alleged Price-Fixing Pushed a Needed Pill Out of Reach - (Bloomberg via NewsPoints Desk)

  • 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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