Nebraska will receive $1.6 million from a national settlement with a pharmaceutical company.
The Nebraska Attorney General’s office reports pharmaceutical distributor AmerisourceBergen Corporation (ABC) has agreed to pay $625 million to settle allegations that it introduced adulterated drugs into interstate commerce. Nearly $100 million has been set aside to go to state Medicaid programs. ABC subsidiary, AmerisourceBergen Specialty Group, pleaded guilty in federal court to illegally distributing misbranded drugs, agreeing to pay $260 million in criminal fines and forfeitures.
Reports from three whistle-blowers in New York began the investigation.
An ABC subsidiary, Medical Initiatives, Inc. (MII), pooled vials of drugs used during chemotherapy to create pre-filled syringes to sell to practitioners. The drugs involved include Aloxi®, Anzemet®, Kytril®, Neupogen®, Procrit®, as well as the generic version of Kytril®.
MII failed to comply with pharmacy regulations in any state where it was licensed. Also, the FDA did not approve the filling of the syringes. The drugs were adulterated and not eligible for federal government reimbursement.