Maryland Attorney General Anthony G. Brown has joined a coalition of 43 states and territories in announcing a $400 million settlement in principle with generic drug manufacturer Sandoz Inc. over allegations that the company conspired to artificially inflate prescription drug prices, reduce competition, and manipulate the generic drug market.
If approved by the court, Sandoz will pay approximately $469 million to resolve the claims, including amounts previously paid in settlements with other states. The agreement also resolves allegations involving Sandoz’s international affiliates, including Novartis AG, which were accused of participating in the alleged anticompetitive conduct and fraudulently transferring assets to avoid liability.
“Generic drugs are supposed to be the affordable option for Marylanders, not another target for corporate collusion,” Brown said. “This settlement holds Sandoz accountable for its anticompetitive conduct, recovers meaningful funds for Marylanders, and puts real reforms in place to stop this kind of price-fixing from happening again.”
As part of the agreement, Sandoz has committed to implementing internal reforms designed to strengthen compliance with antitrust laws and promote fair competition. The settlement remains contingent on approval by all participating states and territories and the court as the states prepare for a trial currently anticipated in 2027.
The case stems from a multistate investigation launched in 2016 into alleged price-fixing involving numerous generic prescription drugs. States have previously reached settlements totaling approximately $96.5 million with other manufacturers, including Glenmark, Lannett, Bausch, Apotex and Heritage.
