Lundbeck settlement over US Justice Department probe

7 June 2018

Danish CNS specialist Lundbeck (LUND: CO) says its US subsidiary has reached an agreement in principle to resolve the US Department of Justice (DoJ) investigation related to Lundbeck LLC's relationship with and donations to independent patient assistance charitable foundations.

The DoJ had investigating the drugmaker’s support of charities that help Medicare patients cover out-of-pocket drug costs. The final terms of agreement are subject to further negotiation with DoJ, according to Lundbeck.

As part of the agreement, Lundbeck will pay the DoJ $52.6 million (about 336 million Danish kroner). This charge will be recognized as ‘other’ operating items, net in the second quarter of 2018 which will be announced in August 2018.

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