Pfizer to Pay $785 Million for Overcharging Anti-Acid Drugs

by Reshma Anand on  April 28, 2016 at 12:36 PM Corporate News
RSS Email Print This Page Comment
US drug maker Pfizer has agreed to pay $785 million to settle allegations that one of its units has offered discounts to private purchasers on heartburn drugs and neglecting the same for Medicaid patients.
Pfizer to Pay $785 Million for Overcharging Anti-Acid Drugs
Pfizer to Pay $785 Million for Overcharging Anti-Acid Drugs
Advertisement

Wyeth, the unit, was accused of knowingly reporting to the government false and fraudulent prices for two forms of Protonix, a drug notably used to treat symptoms of acid reflux, from 2001 at 2006, before it was acquired by Pfizer in 2009, the Justice Department said.

Advertisement
Wyeth failed to report deep discounts on the two drugs it made available to thousands of hospitals nationwide, and as a result wrongfully avoided paying "hundreds of millions of dollars" in rebates to Medicaid, the government health insurance provider for the poor and people with disabilities, the department said .

"As part of the settlement, Wyeth and Pfizer do not deny the government's allegations," it said.

Under the Medicaid program, drug companies must report to the government the best prices they offer other customers for their brand-name drugs.

Based on those prices, the drug companies pay rebates to the state Medicaid programs so that Medicaid receives the same discounts drug companies offer to other large customers.

Under the terms of the settlement, Wyeth will pay $413.2 million to the federal government and $371.4 million to state Medicaid programs.

Source: AFP
Advertisement

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
* Your comment can be maximum of 2500 characters
Notify me when reply is posted
I agree to the terms and conditions

More News on:

Drug Toxicity Top Ten Selling Drugs Drugs Banned in India 
Advertisement

News A - Z

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

News Search

Medindia Newsletters

Subscribe to our Free Newsletters!

Terms & Conditions and Privacy Policy.

Advertisement

Advertisement
Advertisement

Stay Connected

  • Available on the Android Market
  • Available on the App Store

Facebook

News Category

News Archive