MUMBAI: Glenmark Pharmaceuticals has agreed to pay $25 million as part of a settlement with the U.S. Department of Justice (DOJ) in a case involving the pricing of a generic drug.
Glenmark Pharmaceuticals Inc., USA, a wholly-owned subsidiary of the Mumbai-based company, will pay the settlement amount in six installments over five years, with interest at a rate of 4.25 per cent per annum starting from May 28, 2024, according to a regulatory filing late Wednesday.
The U.S. DOJ’s Civil Division has concluded its investigation into potential violations of the False Claims Act and the Anti-Kickback Statute, reaching a settlement with Glenmark Pharmaceuticals Inc., USA.
Settlement amount
“The settlement amount and the associated interest are classified as restitution,” the company stated.
The settlement includes no admission of liability by Glenmark, except for the admissions made in the August 2023 Deferred Prosecution Agreement, the company clarified.
In 2022, Glenmark entered into a three-year deferred prosecution agreement with the U.S. DOJ, concerning pricing practices by former employees related to the generic drug pravastatin between 2013 and 2015.
Shares of Glenmark Pharmaceuticals were up 1.22 per cent, trading at Rs1,708.25 on the BSE.
