Heritage confession regarding the allocation of customers, fix prices, and rig bids and ongoing co-operation with the surveillance

An announcement was made lately that a generic pharma firm, Heritage Pharmaceuticals Inc. was charged with working together with its rivals to fix prices, assigned customers, as well as, rig bids. According to the criminal charge, Heritage was involved in a criminal antitrust conspiracy with other generic firms for a medication which is used for the treatment of diabetes, glyburide.

A deferred prosecution agreement by the Antitrust Division of the Department of Justice was announced at the same time when the filing of the charge was announced. While the deferred prosecution agreement isn’t finalized until the court accepts it, Heritage confesses that it did conspire to allocate customer, fix prices, and rig bids for the medicated production.

Under the terms of the Deferred Prosecution Agreement, Heritage will have to pay an amount of $225K as the criminal penalty and also fully co-operate with the ongoing criminal surveillance. To comply with the terms of the agreement, the firm will be deferred by the United States for a period of 3 years.

Any conviction inclusive of the guilty plea would probably result in the Office of the Inspector General of the Department of Health & Human Services commanding compulsory exclusion of the generic company from all the federal health care programs for at least a period of 5 years. The agreement is an effort to make sure that honesty has been restored to the operations of Heritage, as well as, allows the firm to reserve its financial accountability while preserving the US’s ability to prosecute it should material breaches occur.

The Deferred Prosecution Agreement is based on the separate facts and circumstances present in this case, inclusive of the ongoing cooperation of Heritage with the surveillance till date and its exposure of information regarding criminal antitrust desecrations which involves drugs that are not identified in the criminal charge & agreement.