Tennessee AG Skrmetti: Generic Drug Settlement Reached With 3 Firms

• Tennessee Attorney General Jonathan Skrmetti announced settlements with Ascend Laboratories, Citron Pharma, and Mayne Pharma over generic drug price-fixing allegations.
• Ascend will pay $400,000, Mayne will pay $650,000, and Citron agreed to injunctive terms if it re-enters the generic drug market. Citron Pharma has ceased business operations.
• Ascend and Mayne committed to internal reforms to enhance antitrust compliance and promote competition.
• These agreements are part of ongoing multistate generic drug antitrust enforcement, which has previously secured $496.5 million from other manufacturers.
• A trial in the broader generic drug price-fixing litigation is scheduled for February 2027, and consumers who purchased certain generic drugs between May 2009 and December 2019 may be eligible for compensation.

The ongoing legal actions, culminating in a trial set for February 2027, underscore the sustained regulatory scrutiny facing the generic pharmaceutical sector and highlight the imperative for robust antitrust compliance programs.

Tennessee Attorney General Jonathan Skrmetti recently announced that the state has joined a coalition of 45 states and territories in seeking court approval for significant settlements with three generic drug manufacturers: Ascend Laboratories, Citron Pharma, and Mayne Pharma. These agreements aim to resolve allegations that the companies engaged in a broad conspiracy to artificially inflate prices, stifle competition, and restrain trade within the generic prescription drug market. The Tennessee AG Skrmetti generic drug settlement represents a continued effort to address anticompetitive practices in the pharmaceutical industry.

Under the terms of the proposed settlements, Ascend Laboratories has agreed to pay $400,000 to the states, while Mayne Pharma will pay $650,000. The Citron Pharma antitrust settlement includes robust injunctive terms that will apply should the company decide to re-enter the generic drugs business. Crucially, Ascend and Mayne have committed to implementing internal reforms specifically designed to enhance their compliance with antitrust laws and foster a more competitive market environment, signaling a proactive step towards preventing future violations. Citron Pharma's settlement includes non-monetary terms, as the company has ceased business operations.

These recent settlements, including the Ascend Laboratories antitrust settlement and the Mayne Pharma antitrust settlement, are part of a broader series of multistate generic drug antitrust enforcement actions targeting alleged anticompetitive conduct across the generic drug industry. Previously, the coalition of states secured settlements totaling $496.5 million from other major players, including Sandoz, Glenmark, Lannett, Bausch, Apotex, Heritage Pharmaceuticals, and Heritage's parent company, Emcure. This extensive generic drug price fixing litigation underscores a sustained commitment by state attorneys general to combat illicit practices.

The ongoing legal actions, culminating in a trial set for February 2027 in Hartford, Connecticut, underscore the sustained regulatory scrutiny facing the generic pharmaceutical sector and highlight the imperative for robust antitrust compliance programs. Legal counsel and compliance officers within generic pharmaceutical manufacturing firms should meticulously review their internal controls and antitrust compliance frameworks in light of this persistent enforcement and the impending trial, which signals continued aggressive pursuit of alleged violations.

Attorney General Jonathan Skrmetti emphasized the detrimental impact of such conspiracies, stating that these pharmaceutical companies conspired to drive up the cost of prescription drugs at the expense of Tennessee families. He affirmed the illegality of such actions and expressed satisfaction in holding the companies accountable, underscoring the commitment of Jonathan Skrmetti pharmaceutical antitrust efforts to ensure fair pricing. These settlements, he noted, reinforce the dedication to ensuring that Tennessee consumers benefit from the lower prices that naturally arise from genuine market competition.

Beyond the financial penalties and injunctive relief, these settlements also open avenues for consumer recourse. Individuals who purchased certain generic prescription drugs in the United States between May 2009 and December 2019 may be eligible for compensation. This provision offers a direct benefit to those affected by the alleged price-fixing schemes, further highlighting the consumer-centric focus of these multistate enforcement initiatives.

Compliance officers and legal counsel for generic pharmaceutical manufacturers should review their antitrust compliance programs and internal controls, as multistate enforcement actions continue to target alleged price-fixing and mandate specific reforms to prevent future violations. This ongoing litigation, with a trial scheduled for February 2027, signals continued scrutiny in the sector.

Source: Original reporting based on Attorney General Skrmetti's announcement.