Three generic drugmakers have agreed to pay a total of $447.2 million to resolve allegations that they violated the False Claims Act and conspired to fix prices of generic drugs.
Taro Pharmaceuticals, Sandoz and Apotex paid and received compensation prohibited by the anti-kickback statute through arrangements on price, supply and allocation of customers with other drugmakers, the U.S. Justice Department alleged Oct. 1. The scheme, which took place between 2013 and 2015, resulted in higher prices for federal healthcare programs and patients, according to the department.
The anti-kickback statute prohibits companies from receiving or making payments in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal healthcare program.
Taro Pharmaceuticals has agreed to pay $213.2 million to resolve the allegations. The scheme allegedly involved Taro's drug etodolac, a nonsteroidal anti-inflammatory drug used to treat pain and arthritis, and nystatin-triamcinolone cream and ointment, a combination of an antifungal medicine and steroid used to treat certain kinds of skin infections.
Sandoz agreed to pay $185 million. The scheme allegedly involved Sandoz's drugs benazepril HCTZ, used to treat hypertension, and clobetasol, a corticosteroid used to treat skin conditions.
Apotex agreed to pay $49 million. The scheme allegedly involved Apotex's pravastatin, a drug used to treat high cholesterol and triglyceride levels.
All three drugmakers entered into five-year corporate integrity contracts with the HHS Office of the Inspector General, the Justice Department said. The agreements include internal monitoring and price transparency provisions and require the companies to implement compliance measures.
Read the Justice Department's full news release here.