Teva Pharmaceutical Industries, the Israeli multinational company headquartered in Petah Tikva, which has been plagued with a net financial debt of $26.7 billion, a 56% drop in the sales of its Copaxone-an immunomodulator medication used to treat multiple sclerosis, the collapse of its cash flow, and the slow growth of the drugs that were supposed to replace the lost revenues from Copaxone-all of which already threaten its very existence-is now facing two devastating lawsuits filed against it in the US. The criticism has come from across the political spectrum, from President Donald Trump, a Republican, to progressive Democrats including U.S. Senator Elizabeth Warren, who is running for president.
The lawsuit also names 15 senior executive defendants responsible for sales, marketing, pricing and operations.
"The allegations in this new complaint, and in the litigation more generally, are just that - allegations", TEVA told Reuters.
A spokesman for Teva said the firm hasn't engaged in any conduct that would lead to civil or criminal liability.More news: Rafa Benitez To Make Decision on Future Next Week
The lingering financial troubles, dating back to Teva's loss of it copyrights on several generic drugs, present enormous challenges for Teva CEO Kåre Schultz, a Danish business executive who was appointed in 2017 based on his rare ability to carry out unsentimental purges of failing companies.
The situation worsened in 2012, the complaint said.
According to Bloomberg, Teva helped mastermind a sweeping conspiracy among generic pharmaceutical giants to raise prices for medicines.
Other drug companies named in the suit include Sandoz and Pfizer. Those drugs included pills, capsules, ointments, and cream.More news: 'He did talking on pitch': Saracens coach hails Vunipola in Euro triumph
Fifteen individuals were also named as defendants accused of overseeing the price-fixing scheme on a day-to-day basis.
"The level of corporate greed alleged in this multistate lawsuit is heartless and unconscionable", Nevada Governor Steve Sisolak said in a statement.
The suit was led by Connecticut Attorney General William Tong. A full list of the generic drugs can be found here. 'Now we know that high drug prices have been driven in part by an illegal conspiracy among generic drug companies to inflate their prices'. Potential fines could exceed $2 billion, given that generic drug firms were making higher profits during the time in question, said Steven Tepper, an analyst at Israel Brokerage and Investments. "For drugs that attract a large number of generic manufacturers, the average generic price falls to 20 percent or less of the price of the branded drug".
The suit alleges that the generic drugmakers had for years avoided competing with each other - and thus keeping prices down - and instead deliberately divided the market according to their "fair share" of customers, which created an artificial equilibrium in the market.More news: U.S. presidential contender Kamala Harris favors look at breaking up Facebook