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Ex-Sandoz exec gets probation for price-fixing after cooperation deal
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Ex-Sandoz exec gets probation for price-fixing after cooperation deal
May 15, 2024 2:40 PM

May 15 (Reuters) - A former senior executive of Novartis

unit Sandoz who pleaded guilty to participating in a scheme to

fix prices for generic medicines was sentenced in U.S. court on

Wednesday to one year of probation.

Ex-Sandoz contracting and pricing executive Hector Kellum

pleaded guilty in 2020 in Philadelphia federal court to scheming

to fix the prices of clobetasol, which is used to treat eczema

and psoriasis, and to the anti-fungal nystatin triamcinolone

cream.

Kellum, according to prosecutors, agreed in 2020 to

cooperate with the government's broader, ongoing investigation

into criminal antitrust violations in the generic drug industry.

The Justice Department and an attorney for Kellum, Catherine

Redlich, did not immediately respond to requests for comment on

Wednesday.

Sandoz also did not immediately respond to a similar

request.

U.S. District Judge Richard Barclay Surrick in addition to

probation imposed a $20,000 fine on Kellum.

The government said one of Kellum's alleged co-conspirators

was Ara Aprahamian, a former sales and marketing executive at

Taro Pharmaceutical Industries ( TARO ), who was also indicted for

price-fixing and bid-rigging.

Prosecutors last year asked a federal judge to dismiss the

case against Aprahamian, who had pleaded not guilty in

Philadelphia federal court to charges including price-fixing and

bid-rigging.

The Justice Department and a lawyer for Aprahamian did not

say publicly why the case was dropped.

The case is United States v. Hector Armando Kellum, U.S.

District Court for the Eastern District of Pennsylvania, No.

2:20-cr-00065-RBS.

For U.S.: Kristina Srica

For Kellum: Catherine Redlich of Driscoll & Redlich

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