 "Glenmark Pharmaceuticals agrees to a million settlement over drug pricing misconduct, reflecting ongoing challenges in the pharmaceutical industry.")
Glenmark Pharmaceuticals has reached a settlement with the US Department of Justice, agreeing to pay $25 million due to a case involving the pricing of a generic drug. This payment will be made in six installments over five years, accruing interest at a rate of 4.25 percent from May 2024. The settlement, announced in a regulatory filing, concludes an investigation into the company’s pricing practices related to the generic drug pravastatin, which occurred between 2013 and 2015. Glenmark clarified that this settlement does not imply any admission of liability, except what was already acknowledged in an earlier agreement. Following this news, shares of Glenmark were up by 1.22 percent, trading at Rs 1,708.25 on the BSE.
Glenmark Pharmaceuticals has recently announced an agreement to pay $25 million as part of a settlement with the US Department of Justice. This settlement relates to issues concerning the pricing of a generic drug, specifically pravastatin, which took place between 2013 and 2015. Glenmark Pharmaceuticals Inc, a subsidiary based in the USA, will pay the settlement in six installments over five years, including interest at a rate of 4.25 percent per annum starting from May 28, 2024.
According to a regulatory filing by the company, the Civil Division of the US Department of Justice has concluded its investigation under the False Claims Act and the Anti-Kickback Statute. Glenmark stated that the settlement amount and the associated interest will be considered restitution. Importantly, the company did not admit to any liability beyond what was already acknowledged in an earlier Deferred Prosecution Agreement from August 2023.
As news of the settlement broke, shares of Glenmark rose by 1.22 percent, reaching a trading price of Rs 1,708.25 on the Bombay Stock Exchange.
This settlement signifies a step towards closure for Glenmark as it continues to navigate regulatory challenges in the pharmaceutical sector.
Tags: Glenmark Pharmaceuticals, US Department of Justice, pravastatin, settlement, stock Market, pharmaceutical news, investment news.
What is the settlement amount Glenmark has agreed to pay?
Glenmark has agreed to pay $25 million as part of a settlement with US authorities.
Why is Glenmark paying this settlement?
Glenmark is paying this settlement to resolve legal issues related to their business practices in the United States.
Who are the US authorities involved in this settlement?
The US authorities involved in this settlement include regulatory agencies that oversee drug companies and their compliance with laws.
Will this settlement affect Glenmark’s business operations?
While the settlement might impact Glenmark’s finances, the company plans to continue its operations and focus on compliance in the future.
Is this settlement related to any specific product or issue?
Yes, the settlement is linked to specific legal concerns regarding Glenmark’s conduct with some of its products in the US Market.
