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Taro reaches global resolution with Department of Justice

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Capital Market
Last Updated : Jul 24 2020 | 9:50 AM IST
Taro Pharmaceutical Industries announced that its wholly owned subsidiary, Taro Pharmaceuticals U.S.A., Inc., has resolved all cases involving the Company in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division (DOJ) into the U.S. generic pharmaceutical industry.

Under a Deferred Prosecution Agreement reached with the DOJ, the DOJ will file an Information for conduct that took place between 2013 and 2015. If the Company adheres to the terms of the agreement, including the payment of $205.7 million, the DOJ will dismiss the Information at the end of a three-year period. The Company has also reached a framework understanding with the DOJ Civil Division, subject to final agreement and agency authorization, in which the Company has agreed to pay $213.3 million to resolve all claims related to federal healthcare programs.

The Company is discussing a separate Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General. This agreement will supplement Taro's existing compliance programs, based upon established best practices and industry standards, as well as the Company's global code of conduct.

We are happy to have reached this global resolution with the DOJ, said Uday Baldota, Taro's CEO. Taro is committed to the highest level of ethics and integrity and we will continue to fully cooperate with the government on its ongoing investigation into the generic pharmaceutical industry.

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First Published: Jul 24 2020 | 9:24 AM IST

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