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DOJ Antitrust Unit Subpoenas Mylan, Looking For Information Regarding Pricing Of Doxycycline

Dec 07, 2015 01:39 AM EST | By Jean-Claude Arnobit

The U.S. Department of Justice antitrust division has subpoenaed Mylan N.V. for information, according to a report from Reuters.

The antitrust division is looking for information regarding the pricing and marketing of the company's generic doxycycline antibiotic products.

Reuters said that U.S. drug makers have been under increased pressure from the government, insurers and corporations.

These drug companies are under pressure due to the steep increases in the prices of its generic drugs.

Reuters adds that U.S. Senator Bernie Sanders and Democratic Representative Elijah Cummings opened an investigation last fall into 14 drug companies.

The investigation is over the price increases of generic drugs.

Reuters adds that Sanders and Cummings asked the U.S. Department of Health and Human Services' enforcement arm to conduct an investigation the generic price increases in February.

The cited doxycycline Hyclate 100 milligrams capsules, who had more than doubled in prices since 2014, as an example.

The NYSEPOST adds that the analysis of U.S. government data this year shows that some 10 percent of drugs doubled in prices between June 2013 and June 2014.

The data also shows that half of all generic drugs have also increased in prices.

The NYSEPOST adds that Andrew Finkelstein, an analyst at Susquehanna Financial Group, said in a research note that Mylan was not the main benefactor of the hike in prices of doxycycline.

He also said that Allergan, Sun Pharmaceutical Industries and Hikma Pharmaceuticals are the drug companies that raised their prices the most.

Reuters also reported the antitrust division is also seeking information on any communication that Mylan had with competitors regarding the anti-bacterial products.

Doxycycline, a nearly 40-year-old antibiotic, is used to treat bacterial infections such as acne, pneumonia, Lyme disease, chlamydia and syphilis.

The NYSEPOST adds that the U.S. House Committee on Oversight & Government Reform is conducting its own investigation into the drug pricing.

The committee plans to hold a hearing in 2016.

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