Regenerun Pharmaceuticals (HIKMA) has agreed to pay a record $1.4 billion to resolve allegations that it withheld favorable research from investors and misled investors in its two flagship medicines.
Regeneronne Pharmaceuticals was also ordered to pay $500 million for misappropriating proprietary technology from Hikma.
The two firms are in the midst of negotiations with regulators and the Securities and Exchange Commission (SEC) to settle the antitrust probe.
The companies have agreed to a $1 billion settlement with the SEC, which is expected to be approved this week.
The settlement includes an agreement to provide regulators with confidential information, according to a statement released by the SEC.
The SEC has also agreed to allow Hikma to use confidential information for its marketing and other purposes, the SEC said.
In November, the U.S. Justice Department announced that it had filed charges against Regenerón and Hikma related to violations of federal securities laws.
It said the companies had withheld and misappropriated proprietary information from investors, misled investors and committed fraud.
The DOJ alleges the companies engaged in deceptive practices.
The SEC said in a statement that the DOJ has “recently informed” Regenerons board of directors that it has filed charges related to the matter.
The complaint was filed in a California federal court, according in the statement.
Regeneron CEO David S. Cohen said in the announcement that the settlement will help the company to “protect its intellectual property and our investors.”
Hikma’s chief executive officer, Andrew S. Taggart, said in November that the company is “very pleased” to have reached a settlement with federal regulators.
The company has been under scrutiny for its lack of disclosure of the information that it did not have in its possession when it acquired the Hikma patents in 2007.
The Hikma pharmaceutical company, which was founded in 2008, had received a patent for a drug called Bovine Proximal Thromboproliferative Syndrome (VPTS) that was approved in 2006.
The FDA had not approved the drug as a treatment for this condition.
The U.K.-based company, based in San Diego, received another patent for an insulin that it hoped to develop as a vaccine.
The company also acquired the rights to an insulin called Zinc Oxalate.
In March, Hikma’s board voted to acquire a majority stake in the company.
The sale to Regenerenon would have given the two companies the same share of the company’s revenues, but Regeneronian would have retained the rights and control over the drug company’s intellectual property.
The deal also gives Hikma a majority share of its business.
Regenton and Hikmas companies did not immediately respond to requests for comment on the news.