Federal legislators on the House Committee on Oversight and Government Reform are investigating allegations of prescription-drug price gouging by three pharmacies in Maryland and North Carolina. The pharmacies are accused of selling scarce drugs to wholesalers, which then resell the drugs at vastly marked-up prices. In some cases, wholesalers established their own pharmacies in order to get access to drugs in short supply.

The lawmakers’ investigation found evidence of one transaction where a licensed pharmacy called Priority Healthcare bought a chemotherapy drug called fluorouracil for $6.77 per vial. A distributor it owned called Tri-Med America allegedly soon sold the cancer medicine to another company for more than 10 times the initial price — $69 per vial.

Sources: Chicago Tribune, ABC News