Glenmark Pharma Share Price: US unit to settle with justice department, pay $30 million in installments

Glenmark Pharmaceuticals Ltd. on Tuesday said that its US arm is settling a case about drug pricing by former employees with the United States Department of Justice, Antitrust Division (DOJ).

To settle the case, the company's US subsidiary Glenmark Pharmaceuticals Inc. would pay $30 million in six installments.

Glenmark Pharmaceuticals Inc. has agreed to resolve all of its court proceedings with the DOJ involving historical pricing practices by former employees relating to the generic drug pravastatin between 2013 and 2015.

Further, the company has entered into a three-year Deferred Prosecution Agreement, and if the company complies with the terms of the agreement, including the payment of $30 million, the DOJ will dismiss the pending Superseding Indictment.

"We have devoted considerable resources to strengthen our compliance practices, ensuring the highest ethical operating standards. We will continue to conduct our business with the utmost transparency and integrity,” said Sanjeev Krishan, President of Glenmark Pharmaceuticals Inc.

In April, Glenmark Pharmaceuticals announced that it will pay $87.5 million to three plaintiff groups to settle multiple antitrust and consumer protection cases in the US pertaining to a generic drug.

There were multiple antitrust and consumer protection lawsuits, including a class action, consolidated in the Eastern District of Virginia against the company and its subsidiary Glenmark Pharmaceuticals Inc. in relation to generic Zetia, which is used for the treatment of cholesterol.

Shares of Glenmark Pharma have given up opening gains and are currently trading 0.5 percent lower at Rs 771.1.