Pharmaceutical

Smack Down

(It’s About Time!)

How states are using the law to bring drug executives to heel

By JOHANNA MAYER

Controversies arising from the 500% hike in the generic price of the EpiPen, used to deliver epinephrine for life-threatening allergic reactions, or the 5,400% explosion in the price of Daraprim for the treatment of potentially deadly parasite infections, have only fueled price-fixing accusations. 

But now generic drug executives can expect to face tougher legal repercussions, as evidenced by two federal court lawsuits filed late last year—one in November brought by Eatontown, N.J.-based Heritage Pharmaceuticals Inc. against two of its former executives, Jeffrey Glazer and Jason Malek, using the Racketeer Influenced and Corrupt Organizations Act (RICO), and one in December that 20 states have filed against six companies, including Heritage, after a major antitrust investigation by the state of Connecticut.

 For brother-in-laws Glazer and Malek, the legal problems started on Nov. 10, when Heritage filed its lawsuit in the U.S.District Court for the District of New Jersey against Glazer and Malek, claiming that they “looted tens of millions of dollars from Heritage by misappropriating its business opportunities, fraudulently obtaining compensation for themselves, and embezzling its intellectual property. Glazer and Malek accomplished this brazen theft by creating at least five dummy corporations, which they used to siphon off Heritage’s profits through numerous racketeering schemes.” 

Then, on Dec. 13, the U.S. Department of Justice filed criminal charges against the two men for price-fixing. The DoJ nailed Glazer Heritage’s former CEO, and Malek, the company’s ex-president, with creating several dummy corporations so they could orchestrate elaborate racketeering schemes and pilfer company profits.

DYI: The above two paragraphs is standard operating procedure for the Medical Industrial Complex.  This is NOT an isolated occurrence; it is so prevalent it is institutionalized FRAUD on a MASSIVE SCALE!  Apparently large campaign donations are no longer enough for the political class to look the other way.  My suspicions as the political class of gullible Boomers exit the 76 million strong Millennials are running over corrupt Generation X; this is the beginning of the end for corruption in the medical field.

I’m don't  believe in coincidences – as reported earlier – Rand Paul has proposed legislation repealing Obama Care (that’s great) but buried in the bill exempts health care professionals from the Clayton Act.  This act is 100 year old law dealing with the robber barons who colluded, price fixed, created monopolies (trusts) all to the detriment of consumers.  Apparently Rand Paul – despite his father being Ron Paul the staunch libertarian – is pushing legislation in an effort to thwart civil and CRIMINAL penalties against his largest campaign donors – The Medical Industrial Complex!

If Rand Paul’s bill achieves any traction it will be interesting how the Trump Administrations deals with it – up to and including using his power of veto.  By the way one of most underrated President was Gerald Ford who stated there are three things to being a great president – VETO – VETO – VETO.  Inflation dropped like a rock during the short time he was president – during the 1970’s – as he contained budget deficits.

 DYI