Business
Glenmark to pay $24.96 mn to US to settle pricing probe
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.
In 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.