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Pfizer will pay NC $45 million to settle Medicaid rebate shortfall

Posted April 27

Pfizer

A group of states including North Carolina settled with drug maker Pfizer on Wednesday to settle two lawsuits that alleged the company owed millions in rebates to Medicaid for heartburn and acid reflux medications.

Pfizer and Wyeth, which Pfizer bought in 2009, were the targets of whistleblower lawsuits filed by a former pharmaceutical sales representative and a physician.

The suit alleges that Wyeth knowingly misreported sale prices and underpaid drug rebates it owed to Medicaid and other federal health programs for use of Protonix Oral and Protonix IV, which limit production of gastric acid and are used to treat acid reflux, heartburn, and stomach ulcers.

The $784.6 million settlement includes more than $45 million for North Carolina, Attorney General Roy Cooper said Wednesday.

“Cheating Medicaid wastes tax dollars and harms health care for patients in need,” Cooper said. “Our attorneys and investigators will continue to hold drug companies accountable when they flout the law.”

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