Glenmark to pay $25 million as part of settlement with US authorities

Glenmark Pharmaceuticals has agreed to pay $25 million as part of a settlement with the US Department of Justice regarding a case related to the pricing of a generic drug.

Glenmark Pharmaceuticals Inc, USA, a wholly-owned subsidiary of the Mumbai-based drug maker, has agreed to pay the amount in six installments over five years, with interest on the settlement amount at a rate of 4.25 per cent per annum from May 28, 2024, the company said in a late night regulatory filing on Wednesday.

The Civil Division of the US Department of Justice has concluded its False Claims Act and Anti-Kickback Statute investigation in a settlement with Glenmark Pharmaceuticals Inc, USA, it said.

"The settlement amount and interest on the settlement amount constitute restitution," the drug maker said.

As noted, the settlement does not contain any admission of liability by the company, except to the extent already admitted by Glenmark in the August 2023 Deferred Prosecution Agreement, it added.

Last year, Glenmark had stated that it has entered into a three-year deferred prosecution agreement with the US Department of Justice involving pricing practices by former employees relating to the generic drug pravastatin between 2013 and 2015.

Shares of Glenmark were trading 1.22 per cent up at Rs 1,708.25 apiece on the BSE.