Sandoz reached a deferred prosecution agreement, in which the company agreed to pay a $195 million fine, admitting that it was involved in the indicted conspiracies and that its sales, influenced by the indicted conspiracies, exceeded $US 500 million. In June 2020, the DOJ accused Glenmark Pharmaceuticals, Inc., of cashing in $200 million in surcharges for pravastatin and other drugs through illegal deals with competing generic pharmaceutical companies. Glenmark accepted no fault and pledged to fight the charges. Count Two accuses Sandoz of his role in a conspiracy with Kavod Pharmaceuticals LLC (formerly known as Rising Pharmaceuticals Inc.) to award customers and set prices for Benazepril HCTZ. Rising was indicted and in December 2019 reached a deferred prosecution agreement for his involvement in the same conspiracy. As part of the deferred prosecution agreement, Sandoz has agreed to cooperate fully in the ongoing criminal investigation conducted by the Cartel Department. In addition, the parties will submit a joint application, which will be submitted to the court for approval, to defer prosecution and proceedings against the accused for the duration of the DPA. On Monday, it was announced that subsidiary Sandoz will pay Novartis AG $195 million in criminal penalties for setting the prices of its generic drugs. This sentence is the result of a four-count criminal complaint filed against the company and Sandoz, which slips into a deferred prosecution agreement. As part of the agreement, Sandoz will continue to take steps to improve its compliance program, staff training and monitoring. Sandoz will continue to work with the government`s ongoing investigation into the generic drug industry. In the deferred prosecution agreement, Sandoz admitted that he was involved in the indicted antitrust conspiracies, as follows: Princeton, New Jersey, March 2, 2020 – Sandoz Inc.
has obtained a resolution with the U.S. Department of Justice `DJ) antitrust department over the department`s antitrust investigation into the U.S. generic industry for more than three years. The Sandoz resolution deals with cases of corporate misconduct between 2013 and 2015 involving certain generic drugs sold in the United States. As part of the resolution, Sandoz has agreed to pay $195 million and will enter into a Deferred Prosecution Agreement (DPA). Today`s case is the seventh to be filed as part of the antitrust department`s ongoing investigation against the generic drug industry. Sandoz is the third company to be billed; the two previous companies also entered into deferred prosecution agreements. Four individual charges were laid in the investigation.
Three executives have pleaded guilty, including former Sandoz director Hector Armando Kellum. Ara Aprahamian, a former executive of a New York-based company, was indicted in February 2020 and awaits trial. This press release contains forward-looking statements within the meaning of the U.S. Private Securities Reform Act of 1995. Forward-looking statements can generally be made by words such as “becomes”, “postponed”, “portfolio”, “continue”, “take action”, “improve”, “cooperate”, “commitment”, “commitment”, “grow”, “objective”, “potential”, “pioneer”, “ambition” or similar terms, or by express or implied discussions of potential market authorizations, new indications or labels for generic and organic products. If these are described in this press release or it is possible to identify potential future revenues from these products. or with respect to the resolution, the CCA, the ongoing investigation into the generic drug industry, and the compliance, monitoring and training activities described in this press release. You should not rely too much on these statements.
Such forward-looking statements are based on our current beliefs and expectations regarding future events and are subject to significant known and unknown risks and uncertainties. . . .