WASHINGTON (Reuters) - Pfizer Inc (N:PFE) has agreed to pay $784.6 million to resolve allegations that Wyeth, which it acquired in 2009, underpaid drug rebates to Medicaid, the federal health insurance program, the Justice Department said Wednesday.
The settlement resolves claims by the U.S. and states that Wyeth knowingly reported false and fraudulent prices on two of its anti-acid drugs, Protonix Oral and Protonix IV, the Justice Department said.
Pfizer acquired Wyeth in 2009, about three years after Wyeth had ended the conduct that led to settlement, the Justice Department said.
"We are pleased to have finalized the agreement to resolve these cases, which involve historic conduct that occurred at least 10 years ago, before we acquired Wyeth,” said Doug Lankler, executive vice president and general counsel, in a statement.
"The resolution of these claims reflects our desire to put these historic cases behind us and to focus on the needs of patients," Lankler said.
About $93.7 million of the settlement will resolve claims relating to New York state's Medicaid program, said New York Attorney General Eric Schneiderman in a statement on Wednesday. New York will receive $55.6 million of that sum.
