On Tuesday, Glenmark Pharmaceuticals Ltd. revealed that its US subsidiary is reaching a resolution with the United States Department of Justice, Antitrust Division (DOJ), regarding a case involving former employees and drug pricing.
To settle this case, Glenmark Pharmaceuticals Inc., the company’s US arm, has agreed to make six payments totaling $30 million. This settlement encompasses all legal proceedings with the DOJ linked to past pricing practices by former employees concerning the generic drug pravastatin between 2013 and 2015.
Additionally, Glenmark Pharmaceuticals Inc. has entered into a three-year Deferred Prosecution Agreement. Should the company adhere to the agreement’s terms, which include the $30 million payment, the pending Superseding Indictment will be dismissed by the DOJ.
The management of Glenmark Pharmaceuticals Inc. expressed their commitment to bolstering compliance practices, ensuring the highest ethical standards in their operations, and maintaining transparency and integrity in their business dealings.
In April, Glenmark Pharmaceuticals had already announced its intention to pay $87.5 million to settle multiple antitrust and consumer protection cases related to a generic drug in the US. These cases, including a class action lawsuit, had been consolidated in the Eastern District of Virginia and concerned the company and its subsidiary, Glenmark Pharmaceuticals Inc., in connection with the cholesterol treatment drug generic Zetia.
As of Tuesday, August 22, 2023, Glenmark Pharma’s stock closed at Rs. 759.65, marking a 1.99% decrease from the previous day’s closing price.