Generic drug maker Teva Pharmaceutical Industries (NASDAQ:TEVA) is to pay US$225 million in fines after admitting price-fixing on a range of drugs in the US.
Teva and another firm it worked with, Glenmark Pharmaceuticals, have received deferred prosecution agreements, so as to avoid a trial or criminal prosecution.
A criminal conviction for either would likely see them struck out from federal healthcare programs, according to the US Department of Justice.
Glenmark has agreed to pay US$30 million after admitting to colluding with Teva to fix the prices of the cholesterol drug pravastatin, which it has also agreed to no longer stock.
“Today, the Antitrust Division and our law enforcement partners hold two more pharmaceutical companies accountable for raising prices of essential medicines and depriving Americans of affordable access to prescription drugs,” Jonathan Kanter, assistant attorney general of the DOJ’s antitrust division, said in a statement.
Teva said it will pay the fine in instalments over five years, with a final payment of US$135 million in 2028.
“Teva has robust and consistent compliance controls in place designed to prevent this type of activity from reoccurring,” it said in a release.
Glenmark added it has “devoted considerable resources to strengthen our compliance practices, ensuring the highest ethical operating standards”.
As well as pravastatin, Teva admitted to price-fixing schemes affecting two other drugs: skin infection treatment clotrimazole and eye treatment tobramycin.