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Pfizer unit to pay $784.6 mln in Medicaid rebate settlement
February 16, 2016 / 12:21 PM / 2 years ago

Pfizer unit to pay $784.6 mln in Medicaid rebate settlement

(Reuters) - Pfizer Inc said its Wyeth unit has agreed to pay $784.6 million to settle cases related to the calculation of Medicaid rebates for a gastric drug between 2001 and 2006.

A company logo is seen through branches at a Pfizer office in Dublin, Ireland November 24, 2015. REUTERS/Cathal McNaughton

The claims alleged that Wyeth’s calculation of rebates for Protonix violated the Federal Civil False Claims Act and other laws before the company was bought by Pfizer.

A coalition of 15 U.S. states filed a complaint in a federal court in Massachusetts in 2009, saying Wyeth failed to offer state Medicaid programs the same rebates it gave private hospitals. (reut.rs/1POqA6w)

Medicaid is the joint federal-state healthcare program for the poor.

The agreement in principle does not include an admission of liability by Wyeth, Pfizer said on Tuesday.

Pfizer bought Wyeth for $68 billion in 2009 to soften the blow of losing the patent on cholesterol-lowering Lipitor.

Wyeth has previously settled charges regarding illegal marketing of its kidney drug Rapamune. (reut.rs/1PYBz0K)

Pfizer also reissued its results for the fourth quarter and the full year to reflect this charge. The company’s adjusted earnings will not be affected by the charge.

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