On Monday, the Justice Department accused Wyeth, one of the nation’s biggest drugmakers, of cheating Medicaid programs out of hundreds of millions of dollars by overcharging for Protonix, a stomach acid drug.
The DOJ and 16 states have joined in two lawsuits alleging that between 2000 and 2006, Wyeth offered discounts to thousands of hospitals for two versions of Protonix, a drug that suppresses stomach acid. By law, those rebates are required to be offered to state Medicaid programs as well.
Assistant Attorney General Tony West said in a statement:
“By offering massive discounts to hospitals, but then hiding that information from the Medicaid program, we believe Wyeth caused Medicaid programs throughout the country to pay much more for these drugs than they should have.”
The states joining the lawsuit are California, Delaware, Florida, Illinois, Indiana, Louisiana, Massachusetts, New York, Michigan, Nevada, New Hampshire, Tennessee, Texas, Virginia and Wisconsin, as well as the District of Columbia.
Pfizer is in the process of acquiring Wyeth for more than $60 billion in a deal expected to close later this year.
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