Glenmark Pharmaceuticals Faces Generic Drug Price-Fixing Charges by the Department of Justice
Glenmark Pharmaceuticals Faces Generic Drug Price-Fixing Charges by the Department of Justice
The Department of Justice recently filed criminal charges in the Eastern District of Pennsylvania against Glenmark Pharmaceuticals Inc. for conspiring with Apotex Corporation and an unnamed company “by agreeing to increase and maintain prices of pravastatin and other generic drugs sold in the United States.” See Information at 5, United States v. Glenmark Pharmaceuticals Inc., 20-cr-00200 (E.D. Pa. June 30, 2020), ECF No. 1. Pravastatin is a prescription drug that is used to lower cholesterol. The charges are embodied in a criminal “information” filing, which is similar to an indictment.
Per the DOJ’s information, the conspiracy lasted roughly from May 2013 to December 2015. Among other things, the government alleges that Glenmark “refrained from submitting bids” and “submitted non-competitive bids” for the sale of generic drugs to customers, all with the goal of maintaining high prices. Id. The conspiring companies allegedly communicated with each other about upcoming price increases and agreed to “follow” one another to avoid competing on price. Id. at 6. The government claims that Glenmark and its co-conspirators netted at least $200 million in illegal gains as a result of the conspiracy. The charges are part of a larger, ongoing investigation by the DOJ and state attorneys general into the generic drug industry.
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David Calvello is a Partner in Faruqi & Faruqi, LLP’s New York office. He mainly practices in the area of antitrust litigation with a focus on competition in the pharmaceutical industry. He has worked on multiple cases that resulted in significant settlements, including In re Lidoderm Antitrust Litigation, 14-md-02521 (N.D. Cal.) ($166M settlement), In re Loestrin 24 Antitrust Litigation, 13-md-2472 (D.R.I.) ($120M settlement), and In re Solodyn Antitrust Litigation, 14-md-2503 (D. Mass.) ($76M settlement).
