General Discussion

In this case, however, the family was made up of generic-drug makers Teva Pharmaceuticals, Mylan, Actavis, Lupin, Novartis’ Sandoz, Taro Pharmaceuticals and others. On a single day, Friday, April 2014, the scheme hiked the price on 22 generic drugs—ranging from cephalexin, a bacterial infection antibiotic, which jumped 185%, to ketoconazole cream, used to combat athletes foot and jock itch, which jumped 110%, to diflunisal, an anti-inflammatory, up as much as 182%.

In annals of marketing, their concerted action was impressive. The move rubbed out price competition and profit erosion in an industry plagued by them—and created a windfall for those in on the game.