Fagron to pay $22.5 mln to settle U.S. allegations over inflated drug prices (updated)
07/11/2019 19:31
(Adds no admission of wrongdoing, Fagron's statement)
WASHINGTON, Nov 7 (Reuters) - Pharmaceutical supplier Fagron
Holding USA LLC will pay $22.5 million to resolve allegations
that its subsidiaries inflated average wholesale prices for
compound drug ingredients and submitted fraudulent claims to
federal healthcare programs, the U.S. Department of Justice said
on Thursday.
The settlement will resolve legal actions filed against
Fagron units Freedom Pharmaceuticals, B&B pharmaceuticals and
Pharmacy Services Inc, the department said in a statement.
Fagron Holding is owned by Belgium's Fagron NV FAGRO.BR .
In a statement Fagron said it had already provided for the
payment in its results for the first half of 2019 and said that
the agreement "does not contain an admission of wrongdoing,
fault or liability of any kind by Fagron."
"With this settlement, all ongoing investigations by the
U.S. Department of Justice against Fagron and its subsidiaries
will be terminated and there will be no further exposure and
associated costs for Fagron," the company said.
(Reporting by Susan Heavey, Tim Ahmann and Lisa Lambert;
Editing by Lisa Shumaker)
((202-898-8300; Reuters Messaging:
susan.heavey.thomsonreuters.com@reuters.net))