Sandoz Deferred Prosecution Agreement

Sandoz Deferred Prosecution Agreement

It is the third pharmaceutical company to admit criminal charges and the seventh to be filed as part of the ongoing investigation by the Generic Drug Industry Cartel Department. The two previous companies that have acknowledged misconduct (Heritage Pharmaceuticals and Rising Pharmaceuticals Inc.) have also entered into deferred enforcement agreements. In connection with the filing, the DOJ announced a law enforcement agreement (DPA) to adjourn the proceedings against Taro, in which Taro said it was prepared to pay $205,653,218 $US in criminal penalties and admitted that sales targeted by the offending plots exceeded $500 million. Count Two accuses Sandoz of conspiring with Kavod Pharmaceuticals LLC (formerly rising Pharmaceuticals Inc.) to award customers and set prices for the Benazepril HCTZ. In December 2019, Rising was indicted and filed a lawsuit for his involvement in the same conspiracy. Today`s case is the seventh case to be referred as part of the Department of Generic Drug Industry Agreements` ongoing review process. Sandoz is the third company to be charged; the two previous companies also entered into deferred lawsuit agreements. Four individual appeals were filed during the investigation process. Three executives pleaded guilty, including former Sandoz director Hector Armando Kellum.

Ara Aprahamian, a former executive of a New York-based company, was indicted in February 2020 and is awaiting trial. As part of the agreement on deferred criminal prosecutions, Sandoz agreed to cooperate fully with the ongoing criminal investigations conducted by the Cartel Department. In addition, the parties will file a joint application, which will require court approval, to delay the duration of the CCA to pursue and pursue the charges against the defendant. In accordance with the agreement, Sandoz will continue to take steps to improve its compliance program, training and staff monitoring. Sandoz will continue to cooperate with the government`s ongoing investigation into the generic drug industry. Princeton, New Jersey, March 2, 2020 – Sandoz Inc. has reached an agreement with the U.S. Department of Justice`s (DOJ) Antitrust Department on more than three years of antitrust investigation into the U.S. generic drug industry. The Sandoz resolution deals with cases of corporate misconduct between 2013 and 2015 involving certain generic drugs sold in the United States.

As part of the resolution, Sandoz agreed to pay US$195 million and will enter into a deferred law enforcement agreement (DPA). Sandoz entered into an adjourned lawsuit agreement in which the company agreed to pay a US$195 million fine and admitted that it was involved in the offending conspiracies and that its sales, influenced by the offending conspiracies, exceeded US$500 million. This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995.

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