Wyeth Settles Medicaid Drug Rebate Claims


Medicaid rebates for pantoprazole sodium (Protonix) alleged to have violated the Federal Civil False Claims Act.

Last week, Wyeth announced it reached an agreement of $784.6 million to resolve claims alleging the violation of calculation practices for Medicaid rebates.

Between 2001 and 2006, before Pfizer acquired Wyeth, the Medicaid rebates for pantoprazole sodium (Protonix) violated the Federal Civil False Claims Act, as well as other laws.

“We are pleased to have reached an agreement in principle to resolve these cases, which involve historic conduct that occurred at least 10 years ago, before Pfizer acquired Wyeth,” said Executive Vice President and General Counsel, Doug Lankler. “The resolution of these cases reflects a desire by the company to put these cases behind us and to focus on the needs of patients.”

Although Wyeth is required to make this payment under the agreement, it does not include an admission of liability.

Pfizer is reissuing its financial results for the fourth quarter and all of 2015, which were originally released on February 2, 2016, to reflect the $784.6 million charge recorded in Other (income)/deductions-net in the unaudited Consolidated Statements of Operations.

This reissue will be made in accordance with the US generally accepted accounting principles (GAAP). The non-GAAP adjusted financial information for fourth quarter and 2015 was not affected by the charge.

Once the agreement is finalized, it is expected to resolve all cases pending in the Federal District Court for the District of Massachusetts before the Honorable Douglas P. Woodlock.

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