Pfizer pays Wyeth bill
May 2, 2016
PHARMACEUTICAL giant Pfizer
has committed to paying US$784m
to US federal and state Medicaid
programs to cover off a Wyeth fine
for allegedly failing to declare its
best prices to Medicaid to avoid
paying millions of dollars in rebates,
according to Modern Healthcare.
More than a decade prior to
Pfizer’s purchase of American
pharmaceutical company in 2009,
Wyeth had engaged in what
Medicaid regarded as inappropriate
pricing practices which contravened
a law requiring drug companies to
report to the government the best
prices they offer other customers
on brand-name drugs.
Wyeth, now as the subsidiary
of Pfizer, will pay the federal
government US$413m and the
state Medicaid programs US$371m,
but without any admission of
liability by the company.
The allegations were originally
brought by whistle-blowers Lauren
Kieff and William St. John LaCorte.
In such False Claims Act cases,
whistle-blowers are entitled to a
percentage of whatever money the
government recovers.
In this case, the whistleblowers
will get a significant combined
US$98 million.
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