Glenmark Pharma announced that it has entered into an agreement with the United States Department of Justice and has agreed to pay $25 million in six installments over five years. The pharma company will also pay interest on the settlement amount at a rate of 4.25 per cent per annum from May 28, 2024.
Further, in a regulatory filing, it said, “The settlement amount and interest on the settlement amount constitute restitution. As noted, the settlement does not contain any admission of liability by Glenmark, except to the extent already admitted by Glenmark in the August 2023 Deferred Prosecution Agreement.”
The settlement signed by Glenmark Pharma pertains to the False Claims Act and Anti-Kickback Statute investigation against the company. “The settlement agreement relates to the August 2023 Deferred Prosecution Agreement in the case of United States v. Glenmark Pharmaceuticals Inc, USA, 20-cr200-RBS, in the United States District Court for the Eastern District of Pennsylvania and contains no new facts or admissions of liability by Glenmark,” it said in a statement.
Earlier in August, Glenmark Pharma had reported its fiscal first quarter earnings with profit at Rs 340.27 crore, posting a jump of 127.0 per cent in comparison to Rs 149.93 crore during the corresponding quarter of FY24. The company said that the growth was driven by strong demand for its drugs and a marginal decrease in costs. It had recorded revenue from operations at Rs 3244.19 crore, up 6.9 per cent as against Rs 3036.07 crore during the same period of previous financial year. Glenmark Pharma said that it had a one-time charge of Rs 52.02 crore in the year-ago period for repairs at its manufacturing facilities in India and the United States.
