Teva USA Charged In Generic Drug Price-Fixing Probe

(RTTNews) - Teva Pharmaceuticals USA Inc., a unit of Teva Pharmaceutical Industries Ltd. (TEVA), was charged with three counts of conspiring to fix prices, rig bids, and allocate customers for generic drugs, the U.S. Department of Justice said in a statement on Tuesday.

Responding to the indictment, Teva said it rejects the allegations and would vigorously defend itself in court.

The company alleged that the Justice Department has shown an unwillingness to consider alternatives that would not deeply impact the company and the stakeholders who depend on the company, including the patients who benefit from its medicines.

Meanwhile, the Justice department alleged that Teva USA participated in three conspiracies from at least as early as May 2013 until at least in or around December 2015.

According to the charge, Teva and its co-conspirators agreed to increase prices, rig bids, and allocate customers for generic drugs including drugs used to treat brain cancer, cystic fibrosis, arthritis, seizures, and hypertension.

Teva is the seventh company to be charged in connection with the investigation. Five other companies have settled charges. Teva's co-conspirator Glenmark is awaiting trial. Four executives have also been charged; three have entered guilty pleas, and one is awaiting trial, the Justice department said.

According to the department, each of the charged offenses carry a statutory maximum penalty of $100 million for companies. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than $100 million.

Those settled companies include Taro Pharmaceuticals, Apotex, and Sandoz, a subsidiary of Novartis.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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