Top Executive at Mylan in Alleged Price-Fixing Ring

The second ranked executive at Mylan NV is alleged to have taken an active role in the sinister and vast price-fixing conspiracy amongst global generic pill makers that kept prices for medications artificially elevated, alleged dozens of U.S. says a recently filed complaint.

The civil investigation of several years by attorneys general of different states has reached the highest levels of drug maker executives naming the executive director and president of Mylan Rajiv Malik as one of the first of two executive targeted in this case.

Other industry managers are being investigated according to officials in Connecticut.

In the complaint of 243 pages, the AGs described how over a dozen pharmaceuticals worked together in sharing the market and avoiding an ultimate fight.

At conferences in the industry, at dinner parties, and in dozens of phone conversations, text messages and emails, executives would reach agreements to maintain or increase prices for certain drugs together, or delineate the market share of each company.

The court complaint details several phone calls as well as emails between Malik and Emcure Pharmaceuticals executives and a subsidiary, Heritage Pharmaceuticals at the time when an antibiotic was being launched by Heritage.

Mylan, at the time was the only maker of generic drugs that had a pill in that market, and agreed to give two big accounts up to Heritage, helping it enter into the market and not put pressure on current prices, showed the court complaint.

Attorneys general in 45 states as well as the District of Columbia want to sue Malik as well as the CEO of Emcure Satish Mehta, as part of an expanded complaint against the pharmaceuticals companies, said a prepared statement from George Jepsen the AG of Connecticut.

Mylan announced it was standing behind Malik and would defend the case vigorously. An attorney representing Malik said that his client categorically and emphatically denies the complaint’s allegations and is confident in complete vindication.

Emcure representatives did not respond when asked for comments.

Shares of Mylan were down 6.5% on Tuesday the biggest drop intraday since November of 2016.

This civil investigation is running parallel to a criminal one by the Justice Department which has thus far led to two guilty pleas by former executives with Heritage the subsidiary of Emcure.

At the time, Mylan made the agreement with Heritage to give up a pair of accounts, when Doxy DR was introduced in 2013, Malik cited an agreement that was made prior between the two allowing Mylan to enter without competition with another drug, alleges the complaint.

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