Heritage Pharma settles price-fixing charges; Dr Reddy’s announces China plans

By PharmaCompass

2019-06-06

Impressions: 182 Article

Heritage Pharmaceuticals Inc has agreed to settle allegations under the US False Claims Act pertaining to price fixing of several generic medicines by paying US$ 7.1 million.

Additionally, the Antitrust Division also announced a deferred prosecution agreement resolving the charge, under which Heritage admits that it conspired to fix prices, rig bids, and allocate customers for glyburide, a diabetes medication. “Under the agreement’s terms, Heritage will pay a US$ 225,000 criminal penalty and cooperate fully with the ongoing criminal investigation,” a statement issued by the US Department of Justice said.

Heritage Pharma is a subsidiary of India-based Emcure Pharmaceuticals. In 2017, two former Heritage executives, Jeffrey Glazer and Jason Malek, had pleaded guilty in Philadelphia after being accused of fixing the prices of an antibiotic — doxycycline hyclate — and working to split up the market for glyburide, a type 2 diabetes drug.

Heritage said in a statement that it had revamped its leadership team in the wake of the allegations.

“We are pleased to put these issues behind us and focus on Heritage’s future,” said William Marth, CEO of the Heritage Group, North America and Europe, in an email statement.

Dr Reddy’s China plans: Due to the regulatory changes in China, Indian drugmaker Dr Reddy's Laboratories has identified about 70 products for China that it can launch over the next few years. It is also planning to build a new plant very close to the existing one.

Dr Reddy’s Chief Operations Officer, Erez Israeli, said the drug-maker is in the process of seeking necessary approvals from Chinese authorities for selling drugs (including its oncology drugs) and is upgrading professional teams for this growth. He said China is an “important space” for Dr Reddy’s.

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