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

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.


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SOURCE U.S. Department of Justice
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