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HARRISBURG -- Pennsylvania is expected to receive approximately $1 million as part of a $29.6 million multistate settlement with generic drug manufacturer Glenmark over allegations the company conspired to inflate prescription drug prices and limit competition, Attorney General Dave Sunday announced Wednesday.
The settlement, reached by a coalition of 48 states and territories, resolves allegations that Glenmark participated in a long-running conspiracy to fix prices for generic prescription drugs by artificially inflating prices, reducing competition and restraining trade.
As part of the agreement, Glenmark will pay $29.6 million and cooperate with ongoing litigation involving other drug manufacturers. The company has also agreed to implement internal reforms aimed at ensuring compliance with antitrust laws.
Sunday said consumers who purchased certain generic prescription drugs between May 1, 2009, and Dec. 31, 2019, may be eligible for compensation.
"This conspiracy worked against the very reason many Pennsylvanians choose generic drugs -- for cost savings," Sunday said in a statement. "This company chose to pad profits instead of putting patient care first."
According to the Attorney General's Office, consumers who purchased generic drugs manufactured by Glenmark, Lannett, Bausch, Apotex or Heritage during the eligible period may qualify for restitution. More information about eligibility and the claims process is available through the settlement administrator.
The investigation into Glenmark is part of a broader multistate antitrust case launched in 2016 that alleges numerous generic drug manufacturers coordinated prices through phone calls, emails, text messages and meetings designed to reduce competition.
State investigators allege company executives used terms such as "fair share," "playing nice in the sandbox" and "responsible competitor" to describe agreements that discouraged competition and increased prices.
The Glenmark settlement follows previous agreements with Lannett, Bausch, Apotex and Heritage totaling nearly $67 million. Litigation continues against dozens of corporate defendants and individual executives, according to the Attorney General's Office.