Generic Drug Companies Settle Allegations That They Conspired To Increase Prices Of Medicine
Generic drugmakers Apotex Corporation, Sandoz Inc., and Taro Pharmaceuticals USA, Inc., are slated to pay a grand sum of more than $447 million in an antitrust lawsuit settlement to end the allegations thrown against them that they all worked together to control the price of a number of generic non-branded drugs that ended up increasing the prices of medicine in different federal-sponsored healthcare initiatives.
Government Officials: Taro, Sandoz, Apotex Involved In Antitrust Scheme
According to government prosecutors from the United States Justice Department, the trio reportedly received and paid monetary compensation and benefits from other pharmaceutical players in exchange for the condition of price-fixing, supply allocation, and the like of the generic drugs each one makes.
Taro Pharmaceuticals ended up paying the biggest fine, amounting to $213.2 million. The company allegedly conspired with the grand scheme with its different products, including its arthritis medication called Etodolac, an anti-fungal skin scream used to provide relief to a number of skin-related ailments and others.
Sandoz paid the next highest settlement amount at $185 million. The alleged drugs involved in the price-fixing antitrust scheme made by the drug company include skin treatment called Clobetasol and an anti-hypertension drug called Benazepril HCTZ.
Lastly, Apotex will pay $49 million in relation to its purported participation in the issue with its marketing and selling of Pravastatin – an anti-cholesterol medicine.
As mentioned earlier, officials from the Justice Department argued that the three drugmakers’ actions ended up affecting the health programs implemented by the federal government by pushing up prices and affecting low-income beneficiaries from Medicaid and Medicare.
Besides the monetary payment, Taro Pharmaceuticals, Sandoz, and Apotex agreed to undergo a five-year corporate integrity agreement with the Office of Inspector General or OIG of the federal government.
In the following years covered by the deal, the trio will need to take different measures to ensure transparency and accountability so that the said price-fixing conspiracy incident will not happen again in the future.
Editor’s Note on Taro, Sandoz, Apotex Antitrust Settlement:
This settlement report details the news about the three different drug companies involved in an alleged widespread drug price-fixing antitrust scheme that authorities have filed a case about in the courts. You might also be interested in the Glumetza Generic Diabetes Settlement from Lupin.
Case Name(s) & No.: United States v. Apotex Corp., Inc.; Case No.: 2:20-cr-00619-RBS; United States v. Sandoz Inc.; Case No.: 2:20-cr-00111-RBS; and, United States v. Taro Pharmaceuticals U.S.A., Inc.,; Case No.: 2:20-cr-00214-RBS
Jurisdiction: All cases are being heard in the United States (U.S.) District Court for the Eastern Division of Pennsylvania
Products/Services Involved: Different generic drugs made by Apotex Corp., Sandoz Inc., and Taro Pharmaceuticals U.S.A., Inc.
Allegation(s): The three generic drug players reportedly conspired in antitrust activities to dictate and control the price of their generic drug offerings.
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