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May 24, 2017

NJ pharma execs to cooperate with CT, other states in generic-drug probe

Two former executives of New Jersey-based Heritage Pharmaceuticals Inc. have agreed to cooperate with Connecticut and 40 other states and territories that are investigating alleged anticompetitive activity in the generic drug industry, Attorney General George Jepsen said Wednesday.

In July 2014, the state of Connecticut initiated an investigation into the reasons behind suspicious price increases of certain generic pharmaceuticals. The investigation, which Connecticut is leading, is ongoing and covers a variety of generic drugs, generic drug companies and key executives.

Heritage is a defendant. Jason Malek, its former president, and Jeffrey Glazer, the former chairman and CEO, both of New Jersey, have have agreed to cooperate in the states' ongoing litigation and investigation.

While Heritage is considered the "principal architect of the conspiracies," other involved defendants include Aurobindo Pharma USA Inc., Citron Pharma LLC, Mayne Pharma (USA), Inc., Mylan Pharmaceuticals Inc. and Teva Pharmaceuticals USA Inc.

In December 2016, Glazer and Malek each entered into plea agreements with the U.S. Department of Justice after being charged with two counts of criminal violations of the Sherman Antitrust Act. In addition to their cooperation with the probe, Glazer and Malek will each pay a $25,000 civil penalty to the states.

Jepsen said he is confident the cooperation of the Heritage executives will lead to justice for “consumers, taxpayers -- and, indeed, our healthcare system as a whole, who unwittingly paid for these actions through artificially high prices for generic drugs.”

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