DOJ: Mylan, Other Companies Pay $124 Million To Settle Medicaid Case
October 19 2009 - 3:22PM
Dow Jones News
Mylan Inc. (MYL) and other drug makers have paid $124 million to
settle charges that they underpaid their rebate obligations to
state Medicaid programs, the U.S. Justice Department announced
Monday.
Two Mylan subsidiaries paid a total of $118 million to settle
allegations that they underpaid rebates to Medicaid for several of
the company's drugs.
AstraZeneca PLC (AZN, AZN.LN) paid $2.6 million to settle
charges that it underpaid Medicaid rebates on Albuterol, while
Johnson & Johnson (JNJ) subsidiary Ortho-McNeil paid $3.4
million to settle claims that it underpaid Medicaid rebates for
Dermatop.
The case originated in a federal court in New Hampshire.
Under the Medicaid Prescription Drug Rebate Program, drug
companies pay quarterly rebates to Medicaid programs based on how
much money the programs paid for the companies' medicines.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com