Morning Briefing
Summaries of health policy coverage from major news organizations
Pfizer To Pay $784.6M Over Medicaid Overcharging Allegations
The Wall Street Journal: Pfizer To Pay $785 Million To Settle Medicaid Claims
Drugmaker Pfizer Inc. on Tuesday said it reached an agreement in principle to pay $784.6 million to settle a long-running U.S. government investigation of allegations that its Wyeth unit overcharged government Medicaid health programs for the heartburn drug Protonix. Pfizer said the agreement doesn’t include any admission of liability by Wyeth. The deal is subject to negotiation of a final agreement and court approval. A trial in the case had been scheduled to begin March 7 in federal court in Boston. (Loftus, 2/16)
The Associated Press: Pfizer Reports $784.6 Million Charge For Protonix Deal
Drugmaker Pfizer Inc. swung to a fourth-quarter financial loss, instead of a modest profit, as a result of a just-announced charge to settle a long-running federal case over reimbursements for its former blockbuster heartburn pill. Pfizer, which is planning a mega-acquisition of Irish drugmaker Allergan meant to reduce Pfizer's corporate tax bill, said Tuesday that it has a tentative agreement to pay the federal government $784.6 million. (2/16)
USA Today: Pfizer Settles Medicaid Claims For $785 Million
The long-running case involves practices relating to the calculation of Medicaid rebates by drug maker Wyeth for its drug Protonix between 2001 and 2006. Pfizer acquired Wyeth in 2009. ... Officials had said the miscalculations amounted to hundreds of millions of dollars and the Justice Department had estimated total damages could total more than $2 billion. ... Back in December 2012, Pfizer paid $55 million to resolve allegations that Wyeth promoted Protonix for uses that were not approved by the Food and Drug Administration. (Snider, 2/16)
