Heritage Pharmaceuticals and Apotex $49.1M settlement for inflated drug prices

In addition, the companies agreed to internal reforms to uphold competition in the industry and follow antitrust laws.

Credit: Cagkan Sayin/Adobe Stock

Connecticut Attorney General William Tong announced two cooperation agreements and settlements with Heritage Pharmaceuticals and Apotex Corp., totaling $49.1 million, due to each companies’ alleged scheme to inflate drug prices and limit competition.

The plaintiffs in the case are from 50 states and U.S. territories, including California, Connecticut, Delaware, District of Columbia, Georgia, New Jersey, New York and Pennsylvania. The lead attorney for the majority of the plaintiffs is Connecticut Assistant Attorney General Joseph Nielson.

Apotex agreed to a $39.1 million settlement and Heritage agreed to $10 million. As part of the settlement agreement, the companies must cooperate with the pending multistate litigation in Connecticut District Court against 30 corporate defendants and 25 executives. According to the Connecticut Office of the Attorney General, Heritage and Apotex will work with the states by providing witnesses, verifying documents and offering its knowledge of the industry to make the case stronger.

In addition, the companies agreed to internal reforms to uphold competition in the industry and follow antitrust laws.

“Heritage and Apotex both participated in widespread conspiracies to jack up prices and block competition for generic prescription drugs,” Tong said. “Their brazen collusion cost American families and our public health care programs millions of dollars. Both companies are now cooperating with our ongoing litigation, and we are very confident in our case heading toward our first trial in Connecticut.”

Related: Medicare to get rebates for 64 prescription drugs

The two pharmaceutical companies did not immediately respond to requests for comment.

The settlements originate from three antitrust complaints filed against big pharma companies and executives. Each case is focused on different sets of generic drugs. The third complaint is set to be tried first, and concerns 80 topical generic drugs that generated billions of dollars. According to the Connecticut Attorney General’s Office, this case is against 26 corporate defendants and 10 individuals, and six pharmaceutical executives have agreed to settlements “and have been cooperating to support the states’ claims in all three cases.”

The states are currently preparing for trial, which is on track to occur in Hartford, Connecticut.

These three lawsuits were brought after investigations revealed large amounts of evidence through witnesses, a database of more than 20  million documents and millions of detailed phone records that pointed to an alleged conspiracy to deter competition and unilaterally raise prices.