Texas, California Attorneys General Investigating Dr. Reddy’s Drug Pricing

Two states have launched investigations into generic drug pricing, following in the footsteps of federal investigators.

According to Dr. Reddy’s Laboratories, attorneys general from both Texas and California requested pricing information from the Indian generics maker in November.

The Texas officials sought sales and pricing information on certain products marketed in the U.S. from 1995 on, Dr. Reddy’s said. The company has so far agreed to provide a sample of data covering a single three-month period by Feb. 20.

Meanwhile, the California office subpoenaed pricing information for 15 specific drugs, the company said, though it didn’t identify the products under scrutiny.

Dr. Reddy’s, which disclosed the investigations in its most recent routine SEC filing, said it was coordinating with the two state offices to avoid duplication of efforts.

In the same SEC filing, Dr. Reddy’s notes that the inquiries come against a backdrop of investigations into generics pricing at the national level. The first, a Congressional investigation, looks at prices of some generic drugs that have seen dramatic price increases over the last two years. The second is a separate Department of Justice inquiry into those increases.

Dr. Reddy’s and the Texas attorney general’s office declined to comment further. The California attorney general’s office did not respond to a request for comment.

GPhA has blasted the inquiries as focusing too narrowly on a handful of price increases while missing the broader savings provided by generic drugs. The trade group notes that generics prices dropped about 50 percent between 2008 and 2014 while brand prices nearly doubled. — Bryan Koenig