Canadian pharma billionaire to pay $100 million in anti-trust settlement

(CNN) — Canadian pharmaceutical company Apotex, which is led by a Canadian-born billionaire, will pay $100 million to resolve U.S. anti-trust claims, the U.S. Department of Justice announced Tuesday. Apotex has agreed to help…

Canadian pharma billionaire to pay $100 million in anti-trust settlement

(CNN) — Canadian pharmaceutical company Apotex, which is led by a Canadian-born billionaire, will pay $100 million to resolve U.S. anti-trust claims, the U.S. Department of Justice announced Tuesday.

Apotex has agreed to help the department investigate competitors in exchange for not filing a lawsuit against the company, according to the DOJ.

Apotex also agreed to cooperate with the agency’s investigation of a smaller business rival. The company agreed to supply a database that contains information on some 700 products that are supplied to Apotex, and supply company JAKKS Pacific with data on some 84 products that are supplied to JAKKS.

Barry Sherman, Apotex’s chief executive, has an estimated net worth of $5.1 billion. The stock was down 13% in early trading on Tuesday.

“We allege that Dr. Sherman and a small number of his fellow executives established an illegal cartel and directed Apotex and JAKKS Pacific to conspire to set artificially high prices,” said assistant attorney general Makan Delrahim in a statement.

“Competition is necessary to ensure that consumers are not harmed and doctors are not made uncompetitively overburdened,” Delrahim said.

Apotex and other defendants deny the antitrust allegations.

The DOJ said that by agreeing to provide the information, Apotex will let the agency find and share information that the company might have otherwise withheld.

CNN’s Tim Schwarz and Kareen Wynter contributed to this report.

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