New Delhi: Pharmaceutical major Glenmark on Wednesday said its US subsidiary will pay USD 25 million to the federal government there as well as to the Texas state administration to settle a pricing investigation.
The company will pay USD 11.25 million each to the US federal government and the Texas state administration in 16 tranches spread over four years, besides paying USD 2.5 million as the cost of litigation.
"Our subsidiary Glenmark Generics Inc., USA has concluded the pricing investigation by the Texas Attorney General, USA. Under the terms of the agreed settlement, there is no admission of liability.
"Glenmark Generics will make a payment in 16 equal tranches of USD 1.56 million each quarter for next 16 quarters to the state of Texas," Glenmark said in a BSE filing.
Commenting on the settlement, Glenmark President, North America and Global API Business, Robert Matsuk said: "The settlement amount will not materially impact the organisation's cash-flow."
He further said: "We remain committed to continuing our mission of providing our customers with the finest generic pharmaceutical products in the US and complying with all applicable state and federal pricing requirements."
Elaborating on the settlement agreement, the company said: "Glenmark must pay the state of Texas a total of USD 11.25 million for the state's general revenue fund. Because the Medicaid programme is jointly funded by the state and the US taxpayers, the federal government is entitled to a percentage of the settlement proceeds."
"The federal government's share is also USD 11.25 million. Additionally, the Texas Attorney General's Office will receive USD 2.5 million in attorneys' fees and costs," the company added.
