Sandoz $195 Million Fine in Price Fixing Scheme
Sandoz has agreed to pay a $195 million criminal penalty under a deferred prosecution agreement in an ongoing generic drug price-fixing investigation. A four-count felony charge was filed 3/2 in the U.S. District Court for the Eastern District of Pennsylvania, charging Sandoz with participating in four criminal antitrust conspiracies, each with a competing manufacturer of generic drugs and various individuals, according to a Justice Department release. This represents the third pharmaceutical company to admit to criminal antitrust charges in the Antitrust Division’s ongoing investigation. The alleged conspiracies took place between 2013 and 2015.
Under the agreement, Sandoz has agreed to cooperate fully with the government Antitrust Division’s ongoing criminal investigation. In the filing, Sandoz admitted that it participated in the charged antitrust conspiracies, as follows:
- Count one charges Sandoz for its role in a conspiracy involving clobetasol (cream, emollient cream, gel, ointment, and solution), desonide ointment, and nystatin triamcinolone cream.
- Count two charges Sandoz for its role in a conspiracy with Kavod Pharmaceuticals (formerly known as Rising Pharmaceuticals) to allocate customers and fix prices of benazepril HCTZ. Rising was charged and entered into a deferred prosecution agreement 12/19.
- Count three charges Sandoz for its role in a conspiracy that included desonide ointment.
- Count four charges Sandoz for its role in a conspiracy that included tobramycin inhalation solution.