American DOJ fines Glenmark $30 million for allegedly manipulating medicine prices

22 Aug 2023 , 01:06 PM

The prosecution agreements ending the criminal antitrust accusations against Teva Pharmaceuticals USA, Inc. and Glenmark Pharmaceuticals Inc., USA, have been deferred by the US Department of Justice’s Antitrust Division (DOJ).

In connection with that, Glenmark Pharmaceuticals and the DOJ have reached an agreement to end all court cases involving prior pricing practices by former workers in relation to the generic medicine pravastatin between 2013 and 2015.

Shares of Glenmark Pharmaceuticals were trading lower on the NSE at Rs 765.25 at 12:04 p.m.

Glenmark Pharmaceuticals has signed a three-year Deferred Prosecution Agreement, according to the regulatory filing. The DOJ will drop the pending Superseding Indictment if it complies with the terms of the deal, which include the payment of $30 million, due in six installments, according to the news release.

Glenmark is dedicated to operating in an ethical and socially responsible manner. We have invested a lot of money in enhancing our compliance procedures in order to maintain the highest ethical operating standards. According to Sanjeev Krishan, President of Glenmark Pharmaceuticals, ‘We will continue to conduct our business with the utmost transparency and integrity.’

Glenmark Pharmaceuticals will pay $30 million to settle claims that it conspired with Teva Pharmaceuticals to control the price of the cholesterol medication pravastatin, according to the DOJ’s charges.

Teva will pay USD 225 million, and both businesses also agreed to sell up the divisions responsible for producing the popular cholesterol medication pravastatin. According to the agreement, if the corporations follow the settlement terms, federal prosecutors would drop the accusations in three years, according to a Bloomberg article.

The agreement’s conditions reportedly call for Glenmark to sell its version of that medication as well.

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