PHILADELPHIA, PA — Glenmark Pharmaceuticals Inc., based in Mahwah, New Jersey, has agreed to pay $25 million to address allegations of violating the False Claims Act. This settlement stems from accusations that Glenmark engaged in a price-fixing conspiracy for the generic drug pravastatin, which is commonly prescribed for managing high cholesterol and triglyceride levels.
Between 2013 and 2015, Glenmark allegedly participated in illegal agreements with other pharmaceutical companies to manipulate the market conditions for pravastatin. These actions, the government contends, included setting prices and dividing customers, in clear contravention of the Anti-Kickback Statute. This statute prohibits any form of payment or reward in exchange for prescriptions or sales of items covered by federal healthcare programs, aiming to prevent financial incentives from distorting healthcare costs and availability.
U.S. Attorney Jacqueline C. Romero emphasized the gravity of these actions, noting the undue burden they place on consumers, especially during times of escalating drug prices. “An illegal conspiracy to fix the prices of generic drugs is alarming,” Romero stated, highlighting the Department of Justice’s commitment to holding companies accountable for such deceptive practices.
The resolution of these civil claims is part of a broader crackdown on price-fixing in the pharmaceutical industry. Glenmark previously faced criminal charges related to this conduct, resulting in a deferred prosecution agreement and a $30 million criminal fine. The civil settlement is in addition to this penalty, underscoring the federal government’s rigorous approach to combating anticompetitive behavior in the drug market.
This case is one of several outcomes from the Justice Department’s extensive investigation into price-fixing among generic drug manufacturers. The settlement was managed by multiple government entities, including the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the Department of Health and Human Services Office of Inspector General and the Defense Criminal Investigative Service.
The False Claims Act continues to be a crucial tool in identifying and addressing healthcare fraud, ensuring that the federal government recovers funds lost to fraudulent activities. Authorities encourage the public to report any suspicious activities to HHS at 1-800-HHS-TIPS.
While Glenmark has reached this civil settlement, it’s important to note that these claims remain allegations, with no formal admission of liability beyond what was acknowledged in the deferred prosecution agreement.
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