New Jersey Generics Maker Pleads Guilty to Price-Fixing
A New Jersey generics maker pleaded guilty to price fixing and agreed to cooperate with an ongoing investigation into the generics industry.
Heritage Pharmaceuticals of Eatontown, N.J. pleaded guilty to one count of federal antitrust law. The company will pay a $225,000 fine and another $7.1 million to settle civil claims that it conspired with other generics makers to “fix prices, rig bids and allocate customers for glyburide” a diabetes medication, the Department of Justice said.
Heritage agreed to cooperate fully with the ongoing criminal investigation in return for having prosecution deferred for three years.
“American consumers have the right to generic drugs sold at prices set by competition, not collusion,” said Assistant Attorney General Makan Delrahim of the DOJ’s Antitrust Division. The resolution “sends a clear message to generic pharmaceutical companies and their executives that this conduct will not be tolerated.”