Navigation Links
Aventis Pharmaceutical to Pay U.S. $95.5 Million to Settle False Claims Act Allegations
Date:5/28/2009

WASHINGTON, May 28 /PRNewswire-USNewswire/ -- Aventis Pharmaceutical Inc., a wholly owned subsidiary of sanofi-aventis U.S. LLC, has agreed to pay the United States $95.5 million to settle allegations that it violated the False Claims Act by misreporting drug prices in order to reduce its Medicaid Drug Rebate obligations, the Justice Department announced today.

The settlement resolves allegations that between 1995 and 2000, Aventis and its corporate predecessors knowingly misreported best prices for the steroid-based anti-inflammatory nasal sprays Azmacort, Nasacort and Nasacort AQ. Under the Medicaid Drug Rebate Statute, Aventis was required to report to Medicaid the lowest, or "best" price that it charged commercial customers, and pay quarterly rebates to the states based on those reported prices.

In order to avoid triggering a new best price that would obligate it to pay millions of dollars in additional drug rebates to Medicaid, Aventis entered into "private label" agreements with the HMO Kaiser Permanente that simply repackaged Aventis's drugs under a new label. As a result, Aventis underpaid drug rebates to the Medicaid program and overcharged certain Public Health Service entities for these products.

"This agreement reflects our commitment to ensuring that Aventis and other drug companies fulfill their obligations under the Drug Rebate Statute to accurately report pricing information and pass the savings along to the Medicaid program," said Tony West, Assistant Attorney General for the Department's Civil Division. "We will continue to ensure that programs for the most vulnerable portions of our population do not pay any more for pharmaceutical products than they should under the law."

"We will continue to be vigilant in investigating and prosecuting those who scam the Medicaid system - a system that is meant to benefit the poor," said Michael K. Loucks, Acting U.S. Attorney for the District of Massachusetts. "When a drug company agrees to be a provider to the Medicaid programs, it agrees to sell its drugs to them at the same price it gives its best customers. We will, as here, pursue those who break their promises."

Out of the settlement amount, the federal recovery is approximately $49 million. Aventis will also pay over $40 million to the Medicaid participating states, and over $6 million to certain public health services entities who paid inflated prices for the drugs at issue.

As part of today's settlement, sanofi-aventis and the Office of Inspector General of the Department of Health and Human Services entered into an Addendum to sanofi-aventis's existing Corporate Integrity Agreement that requires the company to report certain best price information for drugs covered by Medicaid and other health care programs. The Agreement already in place requires the company to report other pricing information to the government as a result of a prior drug pricing settlement concerning the company's drug Anzemet.

"The Medicaid program serves our nation's most vulnerable, including low-income parents, children, seniors and people with disabilities. As drug costs continue to spiral upward, we must be vigilant and ensure that pharmaceutical companies comply with all federal laws related to the Medicaid program," said Daniel R. Levinson, Inspector General of the Department of Health and Human Services. "Our agreement requires that the Aventis board members personally certify that the company's compliance program is truly effective."

The investigation was handled by the Civil Division, the U.S. Attorney's Office for the District of Massachusetts, the Department of Health and Human Services' Office of Inspector General and Office of Counsel to the Inspector General, and the National Association of Medicaid Fraud Control Units.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Sanofi-aventis Announces Good First-quarter 2009 Performance
2. Sanofi-Aventis and Roche/Chugais Drugs Will Dominate the Indian Colorectal Cancer Drug Market Through 2013
3. Sanofi-aventis Affirms Its Commitment to Partnering with Local Communities to Improve Hispanic and African American Health
4. Apidra(R) SoloSTAR(R), the Easy-to-Use Insulin Delivery Device from sanofi-aventis, Now Available in the United States
5. Paul Chew Appointed to sanofi-aventis U.S. Chief Science Officer/Chief Medical Officer
6. Sanofi-aventis Partners with the Hispanic Community in Miami to Increase Health Awareness, Access to Resources and Help Improve Patient Care
7. Sanofi-aventis Partners with the Hispanic Community in San Antonio to Increase Health Awareness, Access to Resources and Help Improve Patient Care
8. Sanofi-aventis Delivers 2008 Results Above Guidance
9. Sanofi-aventis Partners with the Hispanic Community in Bronx to Increase Health Awareness, Access to Resources and Help Improve Patient Care
10. Sanofi-aventis Partners with the African American Community in Memphis to Increase Health Awareness, Access to Resources and Help Improve Patient Care
11. Sanofi-aventis U.S. Announces Increased Access to Drugs for Low Income Patients Through Expanded PAP Programs
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2017)... ... 23, 2017 , ... Yesterday, U.S. Senate Republicans revealed details ... and replace the Affordable Care Act (ACA). Like the bill narrowly passed by ... a public health insurance program for low-income children, pregnant women, parents of dependent ...
(Date:6/23/2017)... ... 23, 2017 , ... Everybody has their own personal preference when it comes ... and some people don't like it at all. FindaTopDoc took a look at what ... literature can give readers a taste of their deepest, darkest fantasies and has the ...
(Date:6/23/2017)... ... 23, 2017 , ... 21 Middle East and South Asia Leaders Selected as ... government, business and civil society in 11 countries across the Middle East and South ... a transformative exchange of knowledge and ideas with the leading minds in their fields. ...
(Date:6/23/2017)... ... June 23, 2017 , ... Ulster University, Magee Campus in Northern Ireland is ... 3 pm to present to graduate students exciting new and innovative hope research based ... led by The Health Improvement Service of the Western Health & Social Care Trust ...
(Date:6/23/2017)... ... June 23, 2017 , ... Moore Insurance, ... area with access to asset protection and financial planning services, is teaming up ... improving the lives of children with cancer and other chronic diseases. , The ...
Breaking Medicine News(10 mins):
(Date:6/20/2017)... , June 19, 2017  Hill-Rom Holdings, Inc. (NYSE: ... call and webcast on Friday, July 28, 2017, beginning at ... Call Audio Only Dial-in information: To participate in the conference ... dial into the call at least 10 minutes prior to ... is 34090339.  Webcast: ...
(Date:6/14/2017)... , June 14, 2017 The Bio Supply ... City of Fremont and the Biomedical ... bio-pharma industry in California by ... executive networking, and fostering workforce development. The primary focus ... growth of start-ups, as well as small and mid-sized ...
(Date:6/10/2017)... Ala. , June 9, 2017  Shane K. Burchfield, DPM, ... recognized for excellence as a Podiatrist in Alabama ... Podiatry at Family First Foot Care. He brings over 20 years ... medicine, pain management and healthcare, to his role. ... First Foot Care, PC is pleased to welcome you ...
Breaking Medicine Technology: