Generic drug makers Ranbaxy of India and Teva of Israel have agreed to settle allegations they made an illegal pact to restrict competition in New York state, authorities said.
New York state Attorney General Eric Schneiderman said the US units of Ranbaxy Pharmaceuticals and Teva Pharmaceuticals had made a deal to not challenge each other's market positions with respect to dozens of generic drugs they sold in the US, to protect their sales.
The settlement required the two to end the collusion, commit not to enter into similar agreements in the future, and pay the state $US150,000 ($A166,527) each.
"Agreements between drug manufacturers to protect each other's market positions violate fundamental principles of antitrust law and can lead to higher drug prices," Schneiderman said on Wednesday.
Schneiderman vowed to "intervene aggressively" to eliminate collusion in the drug industry.
Ranbaxy and Teva, the world's largest generic drug manufacturer, had collaborated to not challenge "first to file" regulatory exclusivities held by the other for "a large number of drugs", Schneiderman said.
"First to file" exclusivity protects a manufacturer seeking to market a generic version of a branded drug prior to the expiration of the branded drug's patents. The protection bars competition from rival generic drug makers for 180 days, effectively allowing the generic to be sold at higher prices.
The two companies sought to extend this exclusivity over several years, according to the settlement document.
The attorney general's office said it had not identified any "real-world" anticompetitive effects caused by the provision, but that nevertheless the provision was unlawful.
Neither Ranbaxy nor Teva admitted or denied the attorney general's findings, the settlement said.
