US poised to charge Teva in generic drugs price-fixing probe
U.S. prosecutors are preparing to charge Teva Pharmaceutical Industries Ltd. with conspiring with competitors to raise prices for generic drugs, according to a person familiar with the matter.
The Justice Department is planning to charge Teva as soon as Tuesday after the company rebuffed a settlement that would have required paying a criminal penalty and admitting wrongdoing, said the person, who declined to be named because the matter is confidential.
A spokesperson for Teva, which is based in Israel, declined to comment.
Charges against Teva, the world’s largest generic-drug maker by market value, would mark the most significant case to come out of the Justice Department’s years-long investigation into allegations that companies conspired with one another to prop up the prices of certain widely used medications. Nine of every 10 prescription drugs dispensed in the U.S. are generics.
Five other companies have settled charges and agreed to pay a total of $426 million in criminal penalties.
Chief Executive Officer Kare Schultz said in an interview earlier this month that Teva didn’t engage in price-fixing and that the company was prepared to fight any charges.