Pharma Cos have refused to comment on US Lawsuit order alleging conspiracy to hamper competition saying that the matter is sub-judice and is yet to hear from the court following the order.

Around 12 pharmaceutical companies have been sued in the US in which 45 states have alleged multiple conspiracies of price fixing and hampering competition. Amongst the companies sued jointly by 45 US states over charges of colliding with each other include Sun Pharmaceuticals, Dr Reddy’s Laboratories, Emcure Pharmaceuticals, Zydus Cadila Pharmaceuticals and Glenmark Pharmaceuticals.

Attorney general George Jepsen of the US state of Connecticut, led 45 other state counterparts in a wide-ranging multistate anti-trust investigation into allegations of “unreasonably restraining trade, artificially inflating and maintaining prices and reducing competition in the generic pharmaceutical industry throughout the US”.

Calling the findings “shocking”, Jepsen asked the federal court for permission to file a new complaint in the states’ pending 2014 lawsuit that increases the number of generic drug manufacturer defendants from six to 18 in the case and the number of drugs at issue in the litigation from two to 15.

According to the lawsuit, price-fixing conspiracy in the US was aimed at keeping prices of the copycat medicines artificially high.

Simultaneously, for the first time, the states are also suing two senior executives—Rajiv Malik, president and executive director of Mylan N.V., and Satish Mehta, chief executive officer and managing director of Emcure Pharmaceuticals Ltd, which is the parent company of Heritage Pharmaceuticals Inc.

Reacting to the charges, Sun Pharma Spokesperson said, “We can’t comment on the matter as it is subjudice. The court order is out and is yet to hear from the court on further hearing. A Mylan spokesperson while defending his case said, “We have been investigating these allegations thoroughly and have found no evidence of price-fixing on the part of Mylan or its employees. Our review of the Connecticut Attorney General’s press release underpinning the complaint does not change our views.” A spokesperson for Dr. Reddy’s said, “The company intends to continue cooperating fully with all authorities on this matter and as it is sub-judice, wish to refrain from further comment at this point in time.” A Glenmark spokesperson said, “While we do not comment on ongoing litigation, Glenmark prides itself on conducting its business with the utmost integrity and complying with all applicable laws, rules and regulations.”

Emcure said it “strongly disputes the States’ claims and intends to forcefully defend against them”.

While anti-trust investigations can take years to arrive at definite chargeable conclusions, any adverse judgment or even early findings will impact the reputation of the firms involved besides casting a shadow over their business. According to a Citi Research report released recently, cumulative sales of the 13 drugs added in the lawsuit are estimated to be around $1.2 billion.

With $16.4 billion in sales last year, India is the largest exporter of generic drugs. The country’s top 10 drug makers, including many named in the anti-trust investigations, grew their share of the US generics market from 14% in 2010 to about 24% today.