Teva to pay $225M to settle cholesterol drug price-fixing charges

WASHINGTON — The generic drug maker Teva Prescription drugs agreed Monday to pay $225 million to settle price-fixing prices associated to gross sales of a serious cholesterol-lowering drug. The U.S. Division of Justice mentioned the settlement additionally requires Teva to divest its enterprise making and promoting the drug, pravastatin, a generic model of the brand-name drugs Pravachol.

One other generic drug maker, Glenmark Prescription drugs, agreed to pay a $30 million legal penalty and to divest its pravastatin enterprise as properly.

In a press release, the U.S. arm of Israel-based Teva blamed a single former worker for placing agreements with Teva rivals that restricted competitors between 2013 and 2015. That worker left the corporate in 2016, Teva mentioned.

DOJ had charged seven generic drug makers, together with Teva and Glenmark, with worth fixing, bid rigging and market allocation schemes. The seven corporations have settled their circumstances with deferred prosecution agreements. Had any of the circumstances gone to trial, responsible verdicts might have led to obligatory bans from participation in Medicare, Medicaid and different federal well being applications.

The businesses collectively agreed to pay $681 million in fines along with different penalties.