Home ECONOMY Glenmark to pay $24.96 mn to US to settle pricing probe

Glenmark to pay $24.96 mn to US to settle pricing probe

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Mumbai, April 8:

Mumbai-based Glenmark Pharmaceuticals Limited (GPL) on Wednesday said its subsidiary firm in the US will pay the state of Texas $24.96 million under a settlement reached with the state’s Attorney General over the pricing investigation case under the Texas Medicaid Fraud Prevention Act.

GLENMARKIn a regulatory filing with the National Stock Exchange, the company said that under the terms of the agreed settlement, “there is no admission of liability”.

As per the settlement, GPL’s US subsidiary will make the payment in 16 equal instalments of $1.56 million every fiscal quarter for the coming 16 fiscal quarters to the state of Texas.

“Under the settlement agreement, Glenmark must pay the state of Texas a total of $11.25 million for the state’s general revenue fund. Because the Medicaid program is jointly funded by the State and US taxpayers, the federal government is entitled to a percentage of the settlement proceeds. The federal government’s share is also $11.25 million. Additionally, the Texas Attorney General’s Office will receive $2.5 million in attorney’s fees and costs,” the company filing stated.

The case dates back to 2000 when the state started investigations on numerous pharmaceuticals companies for alleged inflated drug prices to the Medicaid programme.

The cabinet has permitted an increase in the investment limit in Glenmark Pharmaceutical by foreign funds from 35.07 percent to 49 percent that will result in fresh inflow of about Rs.2,022 crore. IANS