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Fagron to pay $22.5 mln to settle U.S. allegations over inflated prices

Pharmaceutical supplier Fagron Holding USA LLC will pay $22.5 million to resolve allegations that its subsidiaries inflated average wholesale prices for compound drug ingredients and submitted fraudulent claims to federal healthcare programs, the U.S. Department of Justice said on Thursday.

WASHINGTON, Nov 7 (Reuters) - Pharmaceutical supplier Fagron Holding USA LLC will pay $22.5 million to resolve allegations that its subsidiaries inflated average wholesale prices for compound drug ingredients and submitted fraudulent claims to federal healthcare programs, the U.S. Department of Justice said on Thursday.

The settlement will resolve legal actions filed against Fagron units Freedom Pharmaceuticals, B&B pharmaceuticals and Pharmacy Services Inc, the department said in a statement.

Fagron Holding is owned by Fagron NV FAGRO.BR

(Reporting by Susan Heavey and Tim Ahmann)

((202-898-8300; Reuters Messaging: susan.heavey.thomsonreuters.com@reuters.net))

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