Glenmark Pharmaceuticals Inc. USA (Glenmark), based in New Jersey, has been held accountable for $25 million to resolve allegations that the company fixed drug prices.
The drug in question is pravastatin, used to treat high cholesterol and triglyceride levels. Between 2013 and 2015, Glenmark allegedly made investments and received monies entirely in breach of the Anti-Kickback Statute in promoting the drug alongside other pharmaceutical companies.
“At a time when excessive drug costs are already imposing unprecedented burdens on our country’s vulnerable citizens, an illegal conspiracy to fix the prices of generic drugs is alarming,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania.
Drug company to pay $25m in false claims allegation case
Companies are banned from making or receiving payments related to the sale or purchase of items like drugs, which can be part of federal healthcare programs. Any breach of this activity also violates the Anti-Kickback Statute, especially concerted efforts by multiple companies to fix prices.
“Illegal collaboration on the price or supply of drugs increases costs both to federal health care programs and beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent such conduct and to protect these taxpayer-funded programs from abuse.”
The statute is in place to ensure that prices cannot be manipulated and that they do not impact the supply and demand for important medical care and drugs.
It was also announced that Glenmark had “entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Glenmark paid a criminal penalty of $30 million based on its ability to pay and admitted to conspiring with two other generic drug companies to fix prices on pravastatin. The civil settlement payment announced today is in addition to the criminal penalty paid by the company.”
Image: Pixlr.
