- By: Staff Editor
- Date: November 11, 2016
- Source: http://www.cnbc.com/2016/11/03/doj-examining-role-of-over-12-generic-drug-makers-charges-to-be-filed-by-year-end-report.html
While regulators point out that the key to making profits in the pharmaceutical industry is innovation and breakthrough, they are left investigating an alternative that several industry giants seem to explore - price collusion.
Drug pricing practices in the pharma industry have drawn a lot of flak from various quarters and now lawmakers are turning their attention to this emerging trend. Price hikes at Valeant Pharmaceuticals, Mylan, and others are under close scrutiny, while federal antitrust regulators probe whether Merck & Co Inc, Sanofi SA, Novo Nordisk A/S, and Eli Lilly and Co colluded to fix prices for insulin and other diabetes drugs.
A trend that set its course as early as last fall, when Senator Bernie Sanders and Rep. Elijah Cummings called for investigating 14 drug companies over price hikes for their generic drugs, has the U.S. Justice Department looking to bring in cases before the end of the year. Enforcement action or its timing still remains uncertain.
The pharmaceutical industry in the US employs over 4.5 million people and spends more on R&D than the tech and aerospace industries combined. While regulating the price hikes are a much called for action, it remains a balancing act to avoid discouraging innovations with those doing it right.
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