Glenmark to pay $30mn to settle US price fixing

Mumbai: Glenmark Pharma’s American subsidiary will pay $30 million to the US department of justice (DOJ) to resolve charges of price fixing on cholesterol drug pravastatin, the company said.

The company was charged with conspiring with generic major Teva to fix prices of the drug. This is the latest resolution in a string of cases related to price fixing, which refers to competitors banding together to artificially set the price of a product in the US market.

Over the last three years, the DOJ’s antitrust division has charged five pharmaceutical companies for participating in similar practices affecting multiple generic drugs.

Glenmark said an agreement with the antitrust division of DOJ will resolve all court proceedings involving pravastatin pricing practices by former employees between 2013 and 2015. Glenmark has entered into a three-year deferred prosecution agreement, and if it adheres to the terms, including the $30-million payment, DOJ will dismiss the pending superseding indictment, the company said.

Glenmark’s scrip closed nearly 2 per cent lower at Rs 760 on Tuesday on the BSE. “Glenmark is committed to being a socially and ethically responsible company. We have devoted considerable resources to strengthen our compliance practices, ensuring the highest ethical operating standards. We will continue to conduct our business with the utmost transparency and integrity,” said Glenmark Pharma (US) president Sanjeev Krishan said in a statement.