Grocery Chains Sue Generic Drugmakers, Alleging Price-Fixing Conspiracy

Three supermarket chains sued more than 20 generic drug manufacturers, including Actavis, Apotex, Mylan, Teva and Sandoz, alleging they engaged in a conspiracy to set prices.

Kroger, Albertson’s and H.E. Butt claimed the defendants colluded to hike the price of 30 generics, including albuterol, clomipramine, digoxin and nystatin. For example, wholesale acquisition data shows that beginning in May 2013, Mylan and Sun Pharma both increased the costs of their generic albuterol more than 3,400 percent.

In each case, the price hikes would have been against each company’s self-interest unless such a conspiracy existed, due to the potential loss of market share inherent in raising prices in a competitive market, the complaint says.