The Delaware Department of Justice announced Monday it has recovered more than $1 million for the state’s Medicaid Program through a settlement with a former subsidiary of the Bristol-Myers Squibb Company.
The settlement resolves allegations that Apothecon, Inc. illegally marketed and priced prescription medication that cost state’s Medicaid programs. The national settlement totals $389 million plus interest and involves 43 states, the District of Columbia, and the federal government.
“This $1 million settlement sends a strong message that we will not tolerate fraudulent and illegal overcharging for prescription drugs,” said Attorney General Joseph “Beau” Biden III.
A total of $1,115,876 was recovered for the Delaware Medicaid Program.
Today’s settlement addresses allegations that Bristol-Myers Squibb engaged in improper practices, including:
• Reporting inflated prices for prescription drugs, with the knowledge that Medicaid and other federal programs would pay these prices for Bristol-Myers Squibb and Apothecon products used by their recipients
• Paying illegal remuneration to physicians, health care providers, and pharmacies to induce them to purchase Bristol-Myers Squibb and Apothecon products
• Promoting the sale and use of the antipsychotic drug Abilify for pediatric use and for treatment of dementia-related psychosis – uses the federal Food and Drug Administration has not approved
• Misreporting sales prices for the antidepressant drug Serzone, resulting in the improper reduction of rebates paid to state Medicaid programs
