PHILADELPHIA – In a major blow to the generic pharmaceutical industry, three companies – Taro Pharmaceuticals U.S.A., Inc., Sandoz Inc., and Apotex Corporation – have agreed to pay a staggering $447.2 million to resolve alleged violations of the False Claims Act arising from conspiracies to fix the price of various generic drugs.
The conspiracies, which allegedly occurred between 2013 and 2015, resulted in higher drug prices for federal health care programs, according to the Justice Department. These civil recoveries follow criminal deferred prosecution agreements, under which the three companies previously paid a total of $424.7 million.
Taro Pharmaceuticals U.S.A., Inc., headquartered in New York, has agreed to pay $213.2 million. The Taro drugs allegedly implicated in this scheme address a wide variety of health conditions and include etodolac, a nonsteroidal anti-inflammatory drug used to treat pain and arthritis, and nystatin-triamcinolone cream and ointment, a combination of an antifungal medicine and steroid used to treat certain kinds of skin infections.
Sandoz Inc., headquartered in New Jersey, has agreed to pay $185 million. The Sandoz drugs at issue include benazepril HCTZ, used to treat hypertension, and clobetasol, a corticosteroid used to treat skin conditions.
Apotex Corporation, headquartered in Florida, has agreed to pay $49 million in connection with its sale of pravastatin, a drug used to treat high cholesterol and triglyceride levels.
Acting U.S. Attorney Jennifer Arbittier Williams warned the generic drug industry that it must be held accountable for price-fixing schemes, which not only cause massive financial harm to federal health care programs but also may impact the care available to patients.
The Justice Department’s Civil Division and the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) have been investigating these allegations and will continue to aggressively pursue violations of the Anti-Kickback Statute and the False Claims Act.
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Key Facts
- State: Pennsylvania
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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