Sun Pharma’s arm Taro Pharmaceutical clears all cases with US Department of Justice
Sun Pharma’s American arm Taro Pharmaceutical has resolved all cases involving multi-year investigations by the US Department of Justice into the country’s generic pharmaceutical industry. It was declared by sun pharma on Friday.
The US Department of Justice (DOJ) had launched investigations against Taro Pharmaceutical over generic drug pricing.
As per Sun Pharma’s regulatory filing “Taro Pharmaceuticals USA, Inc has resolved all cases involving the company in connection with the multi-year investigations by the DOJ, Antitrust Division and Civil Division, into the US generic pharmaceutical industry”.
Under a deferred prosecution agreement reached with the DOJ, it said, adding that the department will file a piece of information for conduct that took place between 2013 and 2015.
“If the company adheres to the terms of the agreement, including the payment of USD 205.7 million (approximately Rs 1,542 crore), the DOJ will dismiss the information at the end of a three-year period” according to Taro Pharmaceutical.
“The company has also reached a framework understanding with the DOJ Civil Division, subject to final agreement and agency authorisation, in which the company has agreed to pay USD 213.3 million (approximately Rs 1,599 crore) to resolve all claims related to federal healthcare programs,” said the company. It is discussing a separate corporate integrity agreement with the Department of Health and Human Services, Office of Inspector General added Taro Pharmaceutical.
“This agreement will supplement Taro’s existing compliance programs, based upon established best practices and industry standards, as well as the company’s global code of conduct” the company added.
Sun Pharmaceutical Industries Limited is an Indian multinational pharmaceutical company that manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients primarily in India and the United States. It was founded in 1983with headquarter at Mumbai. Sun Pharmaceuticals had acquired a stake in Taro Pharmaceuticals in 2010.