Sandoz Inc, Antitrust Crimes, New Jersey 2013

Generic pharmaceutical company Sandoz Inc, headquartered in New Jersey, has been charged with conspiring to allocate customers, rig bids, and fix prices for generic drugs, the government announced.

A four-count felony charge was filed in the United States District Court for the Eastern District of Pennsylvania in Philadelphia, charging Sandoz with participating in four criminal antitrust conspiracies, each with a competing manufacturer of generic drugs and various individuals.

This represents the third pharmaceutical company to admit to criminal antitrust charges in the ongoing investigation. The charged conspiracies took place between 2013 and 2015.

Sandoz agreed to pay a $195 million criminal penalty and admitted that its sales affected by the charged conspiracies exceeded $500 million under a deferred prosecution agreement.

Assistant Attorney General Makan Delrahim stated that the resolution is a significant step toward ensuring that prices for generic drugs are set by competition, not collusion, and rooting out antitrust crimes that cheated American purchasers of vital medicines.

Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General, said that the resolution demonstrates the continued dedication of the FBI and its partners to root out collusion and dishonest business practices within the pharmaceutical industry.

U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania stated that when a pharmaceutical company participates in bid-rigging and price-fixing, the entire community suffers.

Related Federal Cases