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Generic Drug “Cartel” Busted In Pricing Collusion Scheme | The Ring of Fire Network

Mike Papantonio:      

A group of generic drug manufacturers have been busted working together to drive up the cost of generic drugs in the United States. The cartel, and it is purely a drug cartel, used special coded language. As a matter of fact, they had their own lingo to help each other keep and plan secret meetings about how they can affect the prices of drugs. When I first saw this story, I had to reread the first few paragraphs a few times because it seems so improbable that you have these, these CEOs that are meeting in what they called girls night out.

That’s part of their lingo. Let’s have a girl’s night out meeting. Now the girl’s night out meeting may be in Berlin at the most exclusive restaurant in the world. It could be in Tokyo at the most exclusive bar in the world, but girls night out is where these CEOs go and meet and they have their lingo. They talk about their, their lingo is really pretty remarkable. It is, one of the, one of the part of it is what they call fair share.

Now everybody around the table understands, we all have to have our fair share. What that is, that’s code for let’s all raise the prices together. The other part of the lingo is Joe seems to be wanting to trash the market. That’s part of, trashing the market as part of the lingo. Joe wants to do the right thing and that’s treat generics like generics. Pick it up from there.

Farron Cousins:      

The one that stood out to me the most was the, the sandbox. The sandbox is were all these generic drug makers go to play and by play they mean, sell our drugs. And the fair share applies to the sandbox because it says, okay, in this particular city there’s two CVSs. There’s two Walgreens. There’s two Rite Aids. So me, you know, I’m president of company A, I’m gonna take all the CVS. You company B, you get the Walgreens. Company C, you take the Ride Aids, the Ready Marts, you know, the smaller ones. But that’s everybody’s fair share.

So CVS can only offer my prescription drug. You have a competitive drug, but we’re not gonna sell them in the same store because that’ll drive down the prices. So anybody who goes to Walgreens gets your drugs, they go to CVS, they get my drugs, that’s fair share, and they colluded to prevent one another from, from overstepping their lines in the sandbox to keep those prices artificially high to the tune of $4,000 or $5,000, $6,000 markups on generic drugs.

Mike Papantonio:    

Okay. So, and the whole notion of generic, if you think about it, the only reason generic was, has gotten by they, they’ve avoided so many pitfalls. You can’t even sue a generic company the same way that you can sue the original manufacturer. There’s all kinds of road problems getting to even sue a generic company. But the generic company said, well, we want this special treatment because we’re different. We have lower prices. We can keep the market down. That was their big sale. So now we find that what’s interesting about this, these are old drugs, Farron.

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Generic Drug “Cartel” Busted In Pricing Collusion Scheme – The Ring of Fire Network.

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