Glenmark Generics, the U.S. unit of Glenmark Pharmaceuticals, has signed a settlement agreement to pay $25 million to be split by the U.S. federal government and the state of Texas for alleged Medicaid fraud.
|Texas Attorney General Ken Paxton|
Other drugmakers may also be in settlement talks with the Texas attorney general's office since the same investigations that led to the Glenmark allegations covered dozens of other companies.
The agreement, which did not require Glenmark to admit liability, settles allegations by the Texas Medicaid program that Glenmark reported erroneous prices to lure pharmacies and other drug providers to prefer the India-based company's products. Texas Medicaid said that led it to reimburse excessive amounts for certain drugs over the course of about 10 years.
In a stock exchange filing, Glenmark reported the agreement with Texas and added that its U.S. unit would pay the $25 million in 16 equal payments over the next four years. The financial impact on the company was expected to be relatively insignificant.
Since the state Medicaid program is partially funded by the U.S. government, the two entities are to receive $11.25 million each, with the remaining $2.5 million distributed to attorneys involved.
- here's the Texas Attorney General release
- and a story from DNA India