Glenmark Agrees to $25 Million Settlement with US Authorities Over Drug Pricing

Glenmark Pharmaceuticals will pay $25 million to settle a case with the US Department of Justice related to generic drug pricing. The settlement, announced late Wednesday, will be paid by Glenmark Pharmaceuticals Inc, USA, a subsidiary of the Mumbai-based company, in six installments over five years. The settlement amount will accrue interest at 4.25% per annum starting from May 28, 2024.

This settlement follows the conclusion of the US Department of Justice’s investigation into violations of the False Claims Act and Anti-Kickback Statute. Glenmark clarified that while the settlement includes restitution, it does not constitute an admission of liability beyond what was acknowledged in an August 2023 Deferred Prosecution Agreement.

Previously, Glenmark had disclosed entering into a three-year deferred prosecution agreement concerning pricing practices by former employees related to the generic drug pravastatin from 2013 to 2015.

Following the announcement, Glenmark’s shares were up by 1.22% to Rs 1,708.25 on the Bombay Stock Exchange (BSE).