Health insurer Humana has brought suit in Pennsylvania against dozens of drug companies, alleging that they conspired to fix prices for generic drugs such as antidepressants, muscle relaxers and skin treatment.

Investigations are proceeding around the country over similar conduct, according to a report in HealthExec, which also says that Humana seeks to recover damages for the overcharges. Among the companies involved in the suit are Actavis Pharma, Teva Pharmaceutical and Mylan.

According to Becker's Hospital Review, the 273-page complaint lists “secret communications and meetings” between the drug companies at industry trade group events that indicate conspiracy to “obstruct generic competition … [and] fix, increase, stabilize and/or maintain the price of [specific] drugs.”

Not only does Humana seek to recover damages, it's looking for a jury trial and triple damages under the Clayton Antitrust Act.

The complaint also references a lawsuit alleging a conspiracy to fix generic drug prices that was brought last November by 47 attorneys general representing 45 states, the District of Columbia and Puerto Rico, as well as the Department of Justice. The suit was filed against 18 pharmaceutical companies and two of their chief executives.

The suit is not looking for chump change, either. According to Humana, it spent more than $1.7 billion on 16 drugs listed in the complaint, saying that it bought them in “substantial quantities” at “grossly inflated prices” thanks to the conspiracy. The suit also cites federal data indicating price increases of more than 8,000 percent for some of the medications.

The HealthExec report points out that the two executives, from Heritage Pharmaceuticals, all named as defendants in Humana's suit, have already pleaded guilty to participating in a conspiracy to fix the prices of the antibiotic and skin treatment drug Doxycycline and antidiabetic medication Glyburide.

Instant Insights /

Humana sues drug companies for alleged price fixing

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