Glenmark, Teva to pay Rs 2118 crore over drug price-fixing
Under the agreement, federal prosecutors will dismiss the charges in three years if the companies abide by the settlement terms.
Teva Pharmaceutical Industries Ltd. and Glenmark Pharmaceuticals Ltd. will pay multimillion-dollar fines and make divestitures as part of a settlement with the Justice Department over price-fixing of commonly used drugs.
Teva will pay $225 million, while Glenmark is to turn over $30 million. Both companies also agreed to sell off their business lines that make a widely used cholesterol drug, pravastatin. Under the agreement, federal prosecutors will dismiss the charges in three years if the companies abide by the settlement terms.
The US unit of Teva, the world’s largest generic-drug maker, was indicted in August 2020 for allegedly fixing prices of medications that treat cholesterol, seizures, pain, skin conditions, blood clots, brain cancer, cystic fibrosis, arthritis and hypertension. Glenmark’s US unit was charged in June 2020.
“Glenmark is committed to being a socially and ethically responsible company and has devoted considerable resources to strengthen our compliance practices,” Glenmark President Sanjeev Krishan said in a statement.
Under the terms of the deferred prosecution agreement announced Monday, Teva acknowledged participating in a conspiracy that affected the prices on three medications: the cholesterol drug pravastatin; clotrimazole, commonly used on skin infections; and tobramycin, often prescribed to treat eye infections and cystic fibrosis. Glenmark admitted to conspiring to fix the price of pravastatin.
Teva will make a $50 million drug donation to humanitarian organizations that help Americans in need.
Five other companies have settled charges and agreed to pay a total of $426 million in criminal penalties as a result of the Justice Department probe.
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