The US Department of Justice, Antitrust Division (DOJ) has deferred the prosecution agreements resolving criminal antitrust charges against Teva Pharmaceuticals USA, Inc. and Glenmark Pharmaceuticals Inc., USA.
On that note, Glenmark Pharmaceuticals has entered into an agreement with the DOJ to resolve all of its court proceedings involving historical pricing practices by former employees relating to the generic drug pravastatin between 2013 and 2015.
At 9:26 am, shares of Glenmark Pharmaceuticals were up 0.7 percent at Rs 779.85 on the BSE.
According to the regulatory filing, Glenmark Pharmaceuticals has entered into a three-year Deferred Prosecution Agreement. If it adheres to the terms of the agreement, including the payment of $30 million, payable in six instalments, the DOJ will dismiss the pending Superseding Indictment, the press release added.
"Glenmark is committed to being a socially and ethically responsible company. We have devoted considerable resources to strengthening our compliance practices, ensuring the highest ethical operating standards. We will continue to conduct our business with the utmost transparency and integrity,” said Sanjeev Krishan, President, Glenmark Pharmaceuticals.
According to the charges by DOJ, Glenmark Pharmaceuticals will pay $30 million to resolve charges alleging that it conspired with Teva Pharmaceuticals to fix prices for the cholesterol drug, called pravastatin.
Teva will pay USD225 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, according to a Bloomberg report.
According to the media reports, the terms of the agreement also require Glenmark to divest its version of that drug.
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