In November 1997, tens of thousands of people were routinely filling prescriptions for 500 tiny clorazepate tablets to treat their anxiety and depression. Consumers, hospitals, insurance providers and government programs such as Medicaid could be overpaying by hundreds of millions of dollars annually for medications because of anti-competitive activities by some major drug companies, lawyers involved say. He says governmental and private class-action drug suits could eventually dwarf current tobacco litigation. The firms involved won't comment on specifics but generally deny wrongdoing. The Pharmaceutical Research and Manufacturers of America, an industry trade organization, said the group has decided not to comment on the state and federal inquiry.
Doctors often allow chemically similar generics if they feel the alternatives are as effective.
In some cases, lawyers say, companies have signed suppliers of essential chemical ingredients to exclusivity agreements, which means that makers of generics have trouble getting raw materials. Mylan denies doing anything improper. State and federal regulators, who are working together, confirm they are also considering antitrust suits against at least six other pharmaceutical companies. Certain actions of Hoechst AG, a huge German drug company that makes Cardizem CD, a popular drug used to treat hypertension and chest pain, are also being examined, lawyers familiar with the joint inquiry say. More expected Litigation experts predict more damage suits in coming months as consumer groups, insurance companies and hospitals allege price fixing.