Glenmark fined $30 million by DOJ to resolve drug price-fixing charges
In a significant legal development, the United States Department of Justice’s Antitrust Division (DOJ) has taken a noteworthy step by deferring the prosecution agreements that address criminal antitrust charges. These charges are directed towards two prominent pharmaceutical companies, namely Teva Pharmaceuticals USA, Inc. and Glenmark Pharmaceuticals Inc., USA.
Of particular interest is Glenmark Pharmaceuticals’ involvement in this scenario. The company has proactively engaged with the DOJ to reach a comprehensive agreement aimed at resolving all ongoing court proceedings.
These legal actions pertain to historical pricing practices, specifically those associated with the generic drug pravastatin, during the time span of 2013 to 2015. By entering into this agreement, Glenmark Pharmaceuticals is taking a significant step towards resolving the legal matters linked to its former employees’ actions during that specific period.
This development has also had an impact on Glenmark Pharmaceuticals’ stock performance. In response to the announcement and the positive strides taken towards resolution, the company’s shares witnessed an encouraging rise. As of 9:26 am, the shares of Glenmark Pharmaceuticals demonstrated a notable increase of 0.7 percent in their value, reaching Rs 779.85 on the Bombay Stock Exchange (BSE).
However, it’s important to recognize that stock prices are susceptible to swift changes influenced by a multitude of factors. These include market sentiment, external news, and broader economic conditions. Given the dynamic nature of financial markets, investors and market participants are advised to stay attuned to credible financial news sources for the most current and accurate updates regarding stock prices and the broader market landscape.
According to the details provided in the regulatory filing, Glenmark Pharmaceuticals has taken a significant step by entering into a three-year Deferred Prosecution Agreement. This agreement signifies the company’s commitment to addressing its legal situation with the US Department of Justice (DOJ). As a part of this agreement, Glenmark Pharmaceuticals has agreed to fulfill certain stipulated terms and conditions.
One key aspect of the agreement is the payment of a sum totaling $30 million, which will be disbursed in six installments. This financial commitment serves as a part of Glenmark’s resolution strategy in its dealings with the DOJ. If the company successfully adheres to all the terms outlined in the Deferred Prosecution Agreement, including the timely payment of the agreed-upon sum, the DOJ will subsequently dismiss the pending Superseding Indictment.
In response to this development, a press release by Glenmark Pharmaceuticals highlighted the company’s dedication to upholding social and ethical responsibilities. The company emphasized its significant investment in enhancing its compliance practices and ensuring the maintenance of the highest standards of ethical conduct. Glenmark Pharmaceuticals also conveyed its commitment to continuing business operations with the utmost transparency and integrity.
Sanjeev Krishan, the President of Glenmark Pharmaceuticals, underscored the company’s unwavering commitment to maintaining ethical standards. He emphasized the company’s focus on transparency, integrity, and ethical operations, all of which form the foundation of Glenmark’s approach to business conduct.
This move reflects Glenmark Pharmaceuticals’ proactive stance in addressing legal matters and aligning its operations with ethical and regulatory standards. As the company navigates this situation, it aims to demonstrate its dedication to ethical practices and responsible corporate behavior.
In light of the charges brought forth by the US Department of Justice (DOJ), Glenmark Pharmaceuticals has reached an agreement to address these allegations. According to the terms of the settlement, Glenmark Pharmaceuticals will make a payment of $30 million as part of its resolution strategy. These charges revolve around the accusation that Glenmark Pharmaceuticals engaged in a conspiracy with Teva Pharmaceuticals to manipulate and fix the prices of a cholesterol drug known as pravastatin.
Similarly, Teva Pharmaceuticals has taken steps to address these allegations as well. The company has agreed to pay a substantial sum of USD 225 million in connection with the charges. Additionally, both Glenmark Pharmaceuticals and Teva Pharmaceuticals have consented to divest or sell off their respective business lines associated with pravastatin, a widely used cholesterol-lowering drug.
The settlement includes an interesting provision: if both companies adhere to the terms of the agreement, federal prosecutors will dismiss the charges within a three-year period. This approach, according to a report by Bloomberg, provides a path for resolving the legal matters while allowing the companies to demonstrate their commitment to abiding by the settlement terms and maintaining ethical standards.
Furthermore, it has been reported by various media sources that as part of the settlement, Glenmark Pharmaceuticals is required to divest its own version of the cholesterol drug in question.
These developments showcase the efforts by both Glenmark Pharmaceuticals and Teva Pharmaceuticals to address the allegations and resolve the legal situation. The financial penalties, business divestitures, and adherence to settlement terms collectively reflect the companies’ dedication to addressing the antitrust charges while striving to uphold transparency and ethical conduct in their operations.
