Taro Pharmaceutical agreed to pay more than $400 million to settle Department of Justice allegations that the drugmaker it conspired to fix the prices of generic drugs.
Under the terms of a three-year deferred prosecution agreement, Taro will pay $205.7 million and agreed to cooperate in the DOJ's ongoing investigation.Taro has also reached a framework understanding with the DOJ Civil Division, subject to final agreement and agency authorization, in which the drugmaker has agreed to pay $213.3 million to resolve all claims related to federal health care programs.
Taro is the fifth pharmaceutical company to admit that it fixed the prices of generic medicines. According to the DOJ, generics companies fixed prices and rigged bids for medications used to prevent and control seizures and treat bipolar disorder, pain and arthritis, and various skin conditions.
The price-fixing probe started five years ago and has grown to include investigations into several major generics companies including Teva Pharmaceutical and Mylan. In February, the former head of Novartis’ generics unit, Sandoz, pled guilty for his participation in the long-running price fixing scheme.
Read the Taro press release
