New Jersey pharmaceutical firm to pay state $71.8 million to settle Medicaid allegations
Wednesday, August 24, 2011, 02:22 PM
New Jersey-based Par Pharmaceutical has agreed to pay the state $71.8 million to settle a lawsuit accusing the drugmaker of defrauding the Medicaid programs in Texas and four other states by improperly inflating drug costs.
Par Pharmaceutical was one of several drug companies accused of scheming to increase sales by reporting inflated drug prices to the state Medicaid program, the Texas Attorney General’s office said today.
Pharmacies and wholesalers who purchased the corporations’ drugs could then bill Texas for the inflated price. The lawsuit also alleged kickbacks, rebates and false price markups from the drugmakers.
A Travis County jury in February returned a $182 million verdict against one of the accused companies, Actavis Mid-Atlantic LLC, and Purepac Pharmaceutical Corp., its sister company. Another company, Teva Pharmaceuticals, settled in July 2010 for $51 million. A settlement with a third company, California-based Watson Pharmaceuticals, is “imminent,” the attorney general’s office said.
Par Pharmaceutical denied any wrongdoing as part of the settlement agreement.
Messages left with Par Pharmaceutical were not returned Wednesday.
Texas’ $71.8 million portion of the Par Pharmaceutical settlement was about half the total $154 million the company agreed to pay. The remaining $82.2 million was shared by Florida, Kentucky, South Carolina and Alaska, the attorney general’s office said.
About $24 million of Texas’ settlement will go into the state’s general fund, the attorney general’s office said.
Wednesday, August 24, 2011, 02:22 PM
New Jersey-based Par Pharmaceutical has agreed to pay the state $71.8 million to settle a lawsuit accusing the drugmaker of defrauding the Medicaid programs in Texas and four other states by improperly inflating drug costs.
Par Pharmaceutical was one of several drug companies accused of scheming to increase sales by reporting inflated drug prices to the state Medicaid program, the Texas Attorney General’s office said today.
Pharmacies and wholesalers who purchased the corporations’ drugs could then bill Texas for the inflated price. The lawsuit also alleged kickbacks, rebates and false price markups from the drugmakers.
A Travis County jury in February returned a $182 million verdict against one of the accused companies, Actavis Mid-Atlantic LLC, and Purepac Pharmaceutical Corp., its sister company. Another company, Teva Pharmaceuticals, settled in July 2010 for $51 million. A settlement with a third company, California-based Watson Pharmaceuticals, is “imminent,” the attorney general’s office said.
Par Pharmaceutical denied any wrongdoing as part of the settlement agreement.
Messages left with Par Pharmaceutical were not returned Wednesday.
Texas’ $71.8 million portion of the Par Pharmaceutical settlement was about half the total $154 million the company agreed to pay. The remaining $82.2 million was shared by Florida, Kentucky, South Carolina and Alaska, the attorney general’s office said.
About $24 million of Texas’ settlement will go into the state’s general fund, the attorney general’s office said.