Wyeth has reached a $1.48 million settlement with the state of Nebraska, part of a nation-wide $784.6 million settlement to resolve allegations it knowingly underpaid rebates for the sales of Protonix Oral and Protonix IV between 2001 and 2006.
The Attorney General’s office says Nebraska contended Wyeth, a subsidiary of Pfizer, underpaid the Nebraska Medicaid Drug Rebate Program.
Two separate lawsuits were filed in U.S. District Court in Massachusetts. The federal government and 35 states, including Nebraska, intervened.
The two drugs are proton pump inhibitors which inhibit the production of gastric acid.
Congress created the Medicaid Prescription Drug Rebate Program in 1990 to contain costs for outpatient drugs. Drug companies must pay quarterly rebates to state Medicaid programs for each of its drugs sold to pharmacies that were reimbursed by Medicaid.