Sun Pharma's US arm Taro resolves anti-trust cases

Source :IANS
Author :IANS
Last Updated: Fri, Jul 24th, 2020, 16:33:15hrs
Sun Pharma

New Delhi: Sun Pharmaceutical Industries on Friday said that its subsidiary Taro Pharmaceutical USA resolved all cases involving the company in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division (DOJ) into the US generic pharmaceutical industry.

In a regulatory filing, Sun Pharmaceutical said that under a Deferred Prosecution Agreement reached with the Department of Justice, the department will file an 'Information' for conduct that took place between 2013 and 2015.

If the company adheres to the terms of the agreement, including the payment of $205.7 million, the Department of Justice will dismiss the information at the end of a three-year period.

"Taro Pharmaceuticals U.S.A., Inc., has resolved all cases involving the Company in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division into the US generic pharmaceutical industry," it said.

The company has also reached a framework understanding with the DOJ Civil Division, subject to final agreement and agency authorization, in which the company has agreed to pay $213.3 million to resolve all claims related to federal healthcare programs.

The Department of Justice had initiated investigations over generic drug pricing.

The filing also said that Taro Pharmaceuticals USA is discussing a separate Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General.

This agreement will supplement Taro's existing compliance programs, based upon established best practices and industry standards, as well as the company's global code of conduct, it said.

"We are happy to have reached this global resolution with the DOJ," said Uday Baldota, Taro's CEO.

"Taro is committed to the highest level of ethics and integrity and we will continue to fully cooperate with the government on its ongoing investigation into the generic pharmaceutical industry," the CEO said.

Shares of Sun Pharmaceutical rose on Friday. At 12.55 p.m., they were trading on the BSE at Rs 483.75, higher by Rs 7.65 or 1.61 per cent from its previous close.