Possible Generic Drug Price Fixing Means Prices Have Skyrocketed

Often, when buying prescription drugs, the pharmacist may offer a generic form of the brand name drug you are purchasing. But, many have cried foul as generic drug price fixing has been suspected from some of the nation’s largest drug manufacturers.

The Difference Between Generic and Brand Name Drugs

The U.S. Food and Drug Administration reports that nearly 80% of prescriptions filled in the United States are generic.

A generic drug is essentially the same drug as a brand name drug. It is the bioequivalent of the brand name drug, the same in dosage, strength, route of administration, quality and intended use. Many times, generic drugs are manufactured after a patent has expired from the brand name drug manufacturer.

The FDA says that generic drug manufacturers must prove that their drug is the same as the brand name and they must pass the same quality standards as any other drug

According to the United States Government Accountability Office, the Drug Price Competition and Patent Term Restoration Act of 1984, more commonly known as the Hatch-Waxman Act, was established to do two things. It helped to protect the patent rights of brand name drug manufacturers including encouraging research and development. But, it also allowed for earlier market entry of the generic versions of those brand name drugs.

When this was enacted over thirty years ago, the generic utilization rate, or the share of generic drugs versus brand name drugs used, was under twenty percent. Now the generic utilization rate is almost 80 percent.

Researchers believe this shift has saved Americans billions of dollars. The Government Accountability Office estimates that the prices of generic drug purchases are, on average, about seventy-five percent lower than brand name drug purchases.

According to the FDA, in 2010, the use of generics saved Americans $158 billion dollars, an average of $3 million per week.

Generic Drug Price Fixing

But, even so, the price of generic drugs has gone up dramatically in recent years. The Healthcare Supply Chain Association, HSCA, reports that some generic drugs have seen an increase in price of upwards of eight thousand percent.

Because of this, accusations of generic drug price fixing have been made. If this can be proven to have occurred, this is in violation of both state and federal anti-trust laws.

Generic drugs that have increased dramatically in price from  2013 to 2014 and may be a part of generic drug price fixing include doxycycline hyclate (increase of 8,000%), albuterol sulfate (increase of $4,000%), glycopyrrolate (increase of 2,700%), divalproex sodium ER (increase of 700%), pravastatin sodium (increase of nearly 600%), neostigmine methylsulfate (increase of 500%) and benazepril hydrochlorothiazide (increase of 400%).

Other drugs that have been suspected of being a part of the generic drug price fixing scheme include isuprel, nitropress, amitriptyline, baclofen and digoxin.

If you have bought generic prescription drugs in the District of Columbia, Hawaii, Massachusetts, Missouri, Montana, Rhode Island or Vermont, you may have been a victim of generic drug price fixing. You may qualify to participate in a free generic drug price fixing class action investigation that could lead to compensation for you and many other generic drug purchasers.

Join a Free Generic Prescription Drugs Price-Fixing Class Action Lawsuit Investigation

If you live in the District of Columbia, Hawaii, Massachusetts, Missouri, Montana, Rhode Island or Vermont and purchased prescription generic drugs, you may qualify to participate in this price-fixing class action lawsuit investigation.

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