Glenmark Pharma Ltd. has reached a settlement with the US Department of Justice, agreeing to pay $25 million over five years to resolve an investigation into the company. This settlement is part of a Deferred Prosecution Agreement related to the False Claims Act and Anti-Kickback allegations.
As part of the deal, Glenmark will also pay 4.25% annual interest on the settlement amount, starting from May 28, 2024. The agreement pertains to a case in the US District Court for the Eastern District of Pennsylvania but does not include any new facts or admissions of liability from the company.
Glenmark’s US business, which accounts for about a quarter of its overall revenue, remains challenging according to the company’s management. However, they are hopeful for recovery once their respiratory products receive approval. The company currently has 196 generic products in the US market, with 50 more applications pending approval.