The U.S. Justice Department has charged Teva Pharmaceutical Industries Ltd with charges including colluding to conspire with competitors to raise prices of widely used generic drugs, high cholesterol drug.
“Today’s charge reaffirms that no company is too big to be prosecuted for its role in conspiracies that led to substantially higher prices for generic drugs relied on by millions of Americans,” said Assistant Attorney General Makan Delrahim.
In a statement Teva said, “it firmly rejects the allegations and will vigorously defend the Company in court.”
According to a source familiar with the matter at hand, the indictment comes in the wake of Teva’s refusal to agree to a settlement that would see it paying a criminal penalty and admit wrongdoing.
In the superseding indictment filed in the U.S. District Court for the Eastern District of Pennsylvania, “Teva is charged with three counts of conspiring with companies that include Glenmark Pharmaceuticals, Apotex Corp, Taro Pharmaceutical Industries and Sandoz Inc,” said a statement from the DoJ.
As per the first charge, Apotex, Teva, and Glenmark agreed to increase prices for pravastatin, a cholesterol-lowering drug as well as other generic drugs.
In the second charge, the DoJ has accused Teva and Taro of agreeing to hike prices, rig bids and allocate customers for drugs to treat blood clots, arthritis, pain, seizures, and skin conditions.
In the third charge, Teva and Sandoz are accused of a conspiracy involving drugs used to treat hypertension, brain cancer, arthritis and cystic fibrosis.
Incidentally, all three, Apotex, Sandoz and Taro have previously admitted their roles in the conspiracies and have agreed to pay penalties, said the DoJ.
In July 2020, “a grand jury returned an indictment against Glenmark for its role in the alleged conspiracy, which Tuesday’s indictment supersedes,” said the DoJ.
In a statement, Teva said although it has attempted to reach a resolution with the Justice Department, the agency “has shown an unwillingness to consider alternatives that would not deeply impact Teva and the stakeholders who depend on the Company, including the patients who benefit from our medicines.”