Pfizer to pay $ 784 mn to resolve Medicaid drug rebate claims case

Pfizer Inc on February 16, 2016 agreed to pay of $784.6 million to resolve claims alleging that Wyeth’s practices relating to the calculation of Medicaid rebates for its drug Protonix (pantoprazole sodium) between 2001 and 2006, several years before Pfizer acquired Wyeth in 2009, violated the Federal Civil False Claims Act and other laws. When finalised, the agreement in principle is expected to fully resolve cases pending in Federal District Court for the District of Massachusetts before the Honorable Douglas P Woodlock.
 
The agreement in principle does not include an admission of liability by Wyeth. The resolution is subject to the negotiation of final settlement agreements and court approval.
   
“We are pleased to have reached an agreement in principle to resolve these cases, which involve historic conduct that occurred at least 10 years ago, before Pfizer acquired Wyeth. The resolution of these cases reflects a desire by the company to put these cases behind us and to focus on the needs of patients,” said Doug Lankler, executive vice president and general counsel.
 
As a result of the agreement in principle, Pfizer is reissuing its financial results prepared in accordance with US generally accepted accounting principles (GAAP) for the fourth quarter and full year of 2015, originally released on February 2, 2016, to reflect this $784.6 million charge recorded in Other (income)/deductions - net in the accompanying unaudited Consolidated Statements of Operations and notes thereto.