45 States: Ascend Citron Mayne Pharma Antitrust Settlement Seeks Approval

• A coalition of 45 states and territories is seeking court approval for settlements with Ascend Laboratories, Citron Pharma, and Mayne Pharma over alleged generic drug price fixing.
• Ascend will pay $400,000 and Mayne Pharma $650,000, while Citron Pharma, having ceased operations, agreed to non-monetary terms.
• All three companies committed to significant injunctive terms, including internal reforms to ensure antitrust compliance and fair competition.
• These settlements are part of a larger, multi-year enforcement effort that has already secured nearly $500 million from other generic drug manufacturers.
• Consumers who purchased generic prescription drugs between May 2009 and December 2019 may be eligible for compensation.

The agreements include significant injunctive terms, mandating internal reforms to foster fair competition and ensure adherence to antitrust regulations within the generic pharmaceutical sector.

A coalition comprising 45 states and territories, including Vermont, is currently seeking judicial approval for three distinct settlements aimed at resolving allegations against Ascend Laboratories, Citron Pharma, and Mayne Pharma. These pharmaceutical companies faced accusations of participating in an extensive and protracted conspiracy to artificially inflate prices, manipulate the market, stifle competition, and unlawfully restrain trade concerning numerous generic prescription drugs. Vermont Attorney General Charity Clark announced the state's involvement in this multi-state effort.

Under the terms of these agreements, Ascend Laboratories has committed to paying $400,000 to the states, while Mayne Pharma will provide $650,000. Citron Pharma, which has ceased its business operations, entered into a settlement consisting solely of non-monetary provisions. Crucially, all three entities have agreed to implement significant injunctive terms, which include a series of internal reforms designed to ensure fair competition and strict adherence to antitrust laws moving forward.

This recent development is part of a broader, ongoing initiative by state attorneys general to address anti-competitive practices within the generic pharmaceutical industry. The coalition has previously secured settlements totaling $496.5 million in restitution and monetary relief from other generic drug manufacturers, including Sandoz, Glenmark, Lannett, Bausch, Apotex, Heritage, and Heritage’s parent company, Emcure. These actions underscore a sustained focus on combating generic drug price fixing conspiracy.

The current settlements are a continuation of a comprehensive series of antitrust cases initiated by a coalition led by Connecticut, which began in 2016. The initial complaint filed that year targeted Heritage Pharmaceuticals, 17 other corporate defendants, two individual defendants, and implicated 15 generic drugs. Subsequently, two former executives from Heritage Pharmaceuticals, Jeffery Glazer and Jason Malek, reached their own settlement agreements.

Further expanding the scope of the investigation, a second complaint was lodged in 2019 against Teva Pharmaceuticals and 21 of the nation's largest generic drug manufacturers, naming 16 individual senior executive defendants. A third complaint, slated for trial first, focuses specifically on 80 topical generic drugs, which collectively account for billions of dollars in sales within the United States, and lists 26 corporate defendants alongside 10 individual defendants. Earlier this year, a fourth complaint was filed against Novartis AG, Sandoz Group AG, and Sandoz AG. However, a settlement has since been reached with Sandoz Inc. and Fougera Pharmaceuticals Inc., which resolves allegations against Novartis AG, Sandoz AG, and Sandoz Group AG regarding their alleged conduct and fraudulent asset transfers, further highlighting the widespread nature of the alleged generic drug price manipulation.

Each of these complaints addresses distinct sets of drugs and defendants, collectively illustrating an intricate, interconnected web of competing industry executives who allegedly orchestrated these illegal agreements. The ongoing nature of these cases signifies a persistent legal challenge to the practices of the pharmaceutical sector, with 45 states pharmaceutical antitrust actions continuing to unfold.

The foundation for these extensive legal actions, including the Ascend Citron Mayne Pharma antitrust settlement, rests upon a series of meticulous investigations. These inquiries were built on compelling evidence gathered from several cooperating witnesses who were central to the various alleged conspiracies. The investigative teams amassed a massive document database containing over 20 million documents, providing a deep insight into the internal workings and communications of the implicated companies.

Further bolstering the cases, investigators compiled a comprehensive phone records database. This database includes millions of call detail records and contact information for more than 600 sales and pricing individuals operating within the generic pharmaceutical industry. This substantial body of evidence has been instrumental in uncovering the alleged schemes to manipulate generic drug prices and restrain trade, providing a robust basis for the numerous complaints filed by the state attorneys general.

The resolution of these cases, including the Mayne Pharma injunctive terms and the Citron Pharma ceased operations settlement, carries significant implications for both the generic pharmaceutical industry and consumers. The agreements include significant injunctive terms, mandating internal reforms to foster fair competition and ensure adherence to antitrust regulations within the generic pharmaceutical sector. This ongoing enforcement action serves as a stark reminder to compliance officers in generic pharmaceutical companies to rigorously review their antitrust compliance programs, particularly concerning pricing and competitive practices.

For consumers, these settlements offer a potential avenue for redress. Individuals who purchased a generic prescription drug between May 2009 and December 2019 may be eligible for compensation. To determine eligibility or to submit a claim, consumers can contact 1-866-290-0182 (toll-free), email info@AGGenericDrugs.com, or visit www.AGGenericDrugs.com. The collective efforts of the states, including the Vermont Attorney General generic drug settlement, aim to restore fair market practices and compensate those affected by the alleged price manipulation.

Compliance officers in generic pharmaceutical companies must review their antitrust compliance programs, especially concerning pricing and competitive practices, given the ongoing multi-state enforcement actions and the injunctive terms agreed upon in these settlements. Lawyers advising clients in this sector should be aware of the continued litigation risks and the evolving standards for antitrust adherence.

Source: Original reporting via Vermont Attorney General's Office