A federal antitrust investigation has quietly been building evidence against three major pharmaceutical manufacturers accused of colluding to delay generic competition for a blockbuster diabetes drug.
Court filings obtained by our investigative team reveal that the companies engaged in a 'pay-for-delay' scheme, where the brand-name manufacturer paid generic competitors to stay off the market. While such agreements are technically legal under certain conditions, the scale and duration of this arrangement may violate antitrust laws.
Internal emails show executives discussing 'market segmentation' and 'territory allocation'—phrases that antitrust lawyers say are red flags for illegal collusion. One email, dated 2021, reads: 'We've reached an understanding with both competitors. Everyone stays in their lane. No price disruption.'
The drug in question costs $450 per month in the US but is available for $35 in Canada and $28 in Europe. The delayed generics would likely have reduced the US price to under $50 per month.
All three companies denied wrongdoing, with one spokesperson stating: 'We compete vigorously and lawfully in all markets.' The DOJ has not yet announced whether charges will be filed.