DOJ settles Medicaid rebate claims with drugmakers for $124 million

The US Department of Justice said Monday that AstraZeneca, Johnson & Johnson and Mylan will pay a combined total of $124 million to settle disputes relating to Medicaid rebates for certain drugs. Mylan will pay $118 million, while AstraZeneca and Johnson & Johnson will settle for $2.6 million and $3.4 million, respectively.

The DOJ wrote that "each of the companies agreed to pay a settlement to resolve allegations that it had sold innovator drugs that were manufactured by other companies and had classified those drugs as non-innovator drugs for Medicaid rebate purposes." AstraZeneca is resolving allegations that it underpaid its rebate obligations with respect to albuterol, and Johnson & Johnson is settling the same allegations with respect to Dermatop (prednicarbate).

Regarding Mylan, the settlement relates to several authorised generic drugs sold between 2000 and 2004. The resolution "includes no admission or finding of wrongdoing" on the company's part, Mylan stated, adding that it plans to "seek recovery of a substantial portion of the settlement amount from any party that received overpayments resulting from adjusted net sales during the relevant time frame."

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