In the latest fallout from a federal probe into generic drug price fixing, the Sandoz unit of Novartis (NVS) agreed to pay $195 million to resolve criminal charges of conspiring with other manufacturers, the third company to be charged as part of the long-running investigation.
The company, which is one of the world’s largest purveyors of generic medicines, admitted to working with several rivals to set prices for several medicines, including a blood pressure pill, an eczema ointment, and a cystic fibrosis treatment between 2013 and 2015, the Department of Justice said in a statement. Sandoz admitted that sales affected by its activities exceeded $500 million.
The investigation, which mirrors a pair of lawsuits filed by dozens of state attorneys general, has been exploring alleged schemes in which one generic company would decide to raise prices on a particular drug and others would follow suit. Federal and state authorities have also explored how the companies would agree to divide a market, rather than compete by lowering prices.
About the Author Reprints
