Generic Drug Manufacturer Files Complaint Against Costco Alleging Solicitation of Illegal Rebates

Overview

Food and Drug Law
Food and Drug Regulatory LawThe Ontario College of Pharmacists has opened an investigation following a complaint from a sales rep at Ranbaxy (a generic drug manufacturer) against Costco.

The complaint alleges that Costco requested that Ranbaxy pay illegal rebates totaling approximately $1.3 million, to “greatly reduce the likelihood” of Costco carrying other generic drugs instead of Ranbaxy’s products. Costco has characterized the requested payments as “advertising fees.”

We will continue to monitor the complaint investigation to assess how it progresses.

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