Glenmark Pharmaceuticals enters into settlement agreement with US Department of Justice; to pay $25 million in installments

The company reported that the US Department of Justice has concluded its False Claims Act and Anti-Kickback statute investigation against Glenmark’s US arm. As a result, Glenmark will pay a settlement fee pertaining to the case which was registered in the United States District Court for the Easter District of Pennsylvania. The company announced that the case has no new facts or admissions of liability by the company.

The case will also not result in any change in the company’s key managerial positions or promoter entities.

The company will pay $25 million in six installments over 5 years with an interest rate of 4.25% per annum.

Last month, the company had announced that its US arm has launched 1 Olopatadine Hydrochloride Ophthalmic Solution USP, 0.1% (OTC). The company stated that the drug is compared to the active ingredient in Pataday Twice Daily Relief.

Citing Nielsen’s syndicated data for the 52 weeks ended July 13, 2024, the company reported that the Pataday Twice Daily Relief (OTC) market had achieved annual sales of $26.4 million.

For the quarter ended June 30, 2024, the company reported a 6.9% year-on-year (YoY) rise in consolidated revenue to ₹3,244 crore. Glenmark Pharmaceuticals reported an 802% YoY rise in net profit to ₹340.2 crore for Q1FY25. However, the higher net profit comes on the back of an exceptional loss recorded in the corresponding period last year.

Shares of the company have risen by nearly 99% since the beginning of the year. The stock has gained over 115% in the past year.