Monday, November 30, 2020

Federal prosecutors accuse execs of fixing drug prices

By on December 14, 2016

Bottles of prescription medication are seen on the shelf of a pharmacy, Friday, Dec. 14, 2007 in Gloucester, Mass. Consumer inflation surged by the largest amount in more than two years in November, led by gasoline prices. The cost of clothing, airline tickets and prescription drugs also jumped. (AP Photo/Lisa Poole)

Bottles of prescription medication are seen on the shelf of a pharmacy, Friday, Dec. 14, 2007 in Gloucester, Mass. (AP Photo/Lisa Poole)

WASHINGTON — Federal prosecutors have charged two former pharmaceutical executives with fixing prices of generic drugs, part of an ongoing government investigation into anticompetitive tactics by companies that make lower-cost drugs intended to reduce medication costs.

The Department of Justice accused two former Heritage Pharmaceuticals executives of conspiring to fix prices, rig bids and avoid competing with other drugmakers in marketing two generic drugs. The charges against Jeffrey Glazer, former CEO of Heritage, and Jason Malek, former president with the company, were unsealed Wednesday in Philadelphia.

Prosecutors allege that the executives worked to fix prices on an antibiotic and a diabetes medication between April 2013 and December 2015.

Heritage said in a statement it terminated the executives in August 2016.

Generic drugs account for 90 percent of prescriptions dispensed in the U.S.

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