Business ProfileforTeva Pharmaceutical USA, Inc.
Current Alerts For This Business
The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.
Aug 25, 2020 Teva Pharmaceuticals USA Inc. (Teva) has been charged with conspiring to fix prices, rig bids, and allocate customers for generic drugs, the Department of Justice announced today.
According to a superseding indictment filed today in the U.S. District Court for the Eastern District of Pennsylvania, the company participated in three conspiracies from at least as early as May 2013 until at least in or around Dec. 2015.
Count one charges Teva for its role in a conspiracy that included Glenmark Pharmaceuticals Inc., USA (Glenmark), Apotex Corp. (Apotex), and others. On May 7, Apotex admitted to its role in this conspiracy and agreed to pay a $24.1 million penalty. On July 14, a grand jury returned an indictment against Glenmark for its role in the same conspiracy, which today’s indictment supersedes. According to the charge, Teva, Glenmark, Apotex, and unnamed co-conspirators agreed to increase prices for pravastatin and other generic drugs. Pravastatin is a commonly prescribed cholesterol medication that lowers the risk of heart disease and stroke.
Count two charges Teva for its role in a conspiracy with Taro Pharmaceuticals U.S.A., Inc. (Taro U.S.A.), its former executive Ara Aprahamian, and others. On July 23, Taro U.S.A. admitted to its role in this conspiracy and agreed to pay a $205.7 million penalty to resolve that charge as well as its role in a separate antitrust conspiracy. Aprahamian was indicted in February 2020 for his role in the conspiracy with Teva, among other charges, and is awaiting trial. According to the charge, Teva and its co-conspirators agreed to increase prices, rig bids, and allocate customers for generic drugs including, but not limited to, drugs used to treat and manage arthritis, seizures, pain, skin conditions, and blood clots.
Count three charges Teva for its role in a conspiracy with Sandoz Inc. and others. In March 2020, Sandoz admitted to its role in this conspiracy, as well as in conspiracies with other generic drug manufacturers, and agreed to pay a $195 million penalty. According to the charge, Teva and its co-conspirators agreed to increase prices, rig bids, and allocate customers for generic drugs including, but not limited to, drugs used to treat brain cancer, cystic fibrosis, arthritis, and hypertension.
Teva is the seventh company to be charged for its participation in conspiracies to fix prices, rig bids, and allocate customers for generic drugs. Five previous corporate cases were resolved by deferred prosecution agreements, and Teva’s co-conspirator Glenmark is awaiting trial. Four executives have also been charged; three have entered guilty pleas, and one is awaiting trial.
A criminal charge merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Each of the charged offenses carry a statutory maximum penalty of $100 million for companies. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than $100 million.
Additional business information
The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.
May 12, 2019 - TRENTON – Attorney General Gurbir S. Grewal announced today that New Jersey and a coalition of 43 other States have filed a lawsuit accusing 20 generic drug companies of conspiring to artificially inflate the prices of over one hundred generic drugs, in violation of federal and state antitrust and consumer protection laws.
Filed in U.S. District Court in Connecticut, the complaint also names 16 individual defendants – drug company executives responsible for sales, marketing, pricing and operations -- and outlines their alleged involvement in “one of the most egregious and damaging price-fixing conspiracies in the history of the United States.”
More than half of the corporate defendants are based in New Jersey, and five of the individual defendants reside in the State.
The complaint alleges that price-fixing by the defendants has caused significant financial damage to state health plans, taxpayer-funded federal healthcare programs like Medicare and Medicaid, employer-sponsored health plans, and individual consumers who pay out-of-pocket for their generic medications.
Drugs subject to the unlawful pricing manipulations included all classes of medication, including oral antibiotics, blood thinners, cancer drugs, contraceptives, anti-inflammatory drugs, statins, anti-depressants, medications used to treat HIV, blood pressure medications, and many more.
The complaint alleges that the collusive activity peaked between July 2013 and January 2015, when one of the participants in the alleged conspiracy, Teva Pharmaceuticals USA, Inc., is alleged to have significantly raised prices on about 387 formulations of 112 different generic drugs. The size of the alleged price increases varies, but a number of drugs saw their prices soar by “well over 1,000 percent.”
A cornerstone of the conspiracy, the complaint alleges, was an understanding among the defendant companies that they would cooperate on pricing so each company could maintain a “fair share” of the various generic drug markets. At the same time, the companies also colluded to “significantly raise prices on as many drugs as possible.”
The complaint alleges violations of the Sherman Act, a federal antitrust law, as well as violations of numerous state laws, including New Jersey’s Antitrust Act and Consumer Fraud Act.
The lawsuit seeks damages, civil penalties and actions by the court to restore competition to the generic drug market.
The lawsuit is the second stemming from a multi-state investigation led by the Connecticut Attorney General. The first lawsuit, which is still pending in U.S. District Court for the Eastern District of Pennsylvania, was filed in December 2016. New Jersey joined that action, which now includes 18 corporate defendants, two individual defendants and 15 generic drugs, in early 2017.
At-a-glance
Related Categories
Business Details
This is a multi-location business.
- Headquarters
- 400 Interpace Pkwy, Parsippany, NJ 07054-1120
- BBB File Opened:
- 5/28/2019
- Years in Business:
- 89
- Business Started:
- 5/1/1935
- Business Started Locally:
- 2/4/1985
- Business Incorporated:
- 2/4/1985
- Type of Entity:
- Corporation
- Business Management
- Mr. Brendan O’Grady, Executive Vice President
- Contact Information
Principal
- Mr. Brendan O’Grady, Executive Vice President
Customer Contact
- Mr. Brendan O’Grady, Executive Vice President
Customer Complaints
0 Customer Complaints
Need to file a complaint? BBB is here to help. We'll guide you through the process. How BBB Processes Complaints and Reviews
File a ComplaintBBB Business Profiles may not be reproduced for sales or promotional purposes.
BBB Business Profiles are provided solely to assist you in exercising your own best judgment. BBB asks third parties who publish complaints, reviews and/or responses on this website to affirm that the information provided is accurate. However, BBB does not verify the accuracy of information provided by third parties, and does not guarantee the accuracy of any information in Business Profiles.
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
BBB Business Profiles generally cover a three-year reporting period. BBB Business Profiles are subject to change at any time. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile.
As a matter of policy, BBB does not endorse any product, service or business. Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.