US investigates Dr Reddy’s and Sun Pharma over generic drugs price increases

The companies, along with 12 other global drug manufacturers have received letters from the US House Committee on Oversight and Government Reform Ranking Member Elijah Cummings and Senator Bernard Sanders, to share ‘information about the escalating prices they have been charging for generic drugs.’

Citing data from the Healthcare Supply Chain Association on recent purchases of ten generic drugs by group purchasing organisations in the last two years, the duo asked the companies to provide information from the specified timeframe.

In particular, the companies have been ordered to disclose total gross revenues from sales of the drugs, prices paid for the drugs, factors that contributed to decisions to escalate prices, and the identity of company officials responsible for setting prices.

Cummings said: "When you see how much the prices of these drugs have increased just over the past year, it’s staggering, and we want to know why."

Sanders said. "We’ve got to get to the bottom of these enormous price increases."

While Sun Pharma spokesperson refused to comment, a Dr Reddy’s spokesperson told The Press Trust of India: "The company is in the process of responding to the notice and is confident of addressing these queries successfully.

"It did not initiate any price increasing activity for the products mentioned in the notice."

Other companies to have received letters include Actavis, Apotex, Endo International, Global Pharmaceuticals, Heritage Pharmaceuticals, Lannett Company, Marathon Pharmaceuticals, Mylan, PAR Pharmaceutical, Teva, West-Ward Pharmaceutical and Zydus Pharmaceuticals.

Image: Dr Reddy’s and Sun Pharma being probed over price escalation of generic drugs. Photo: courtesy of amenic181/©2014 FreeDigitalPhotos.net.