Press Release from Attorney General’s Office:
July 16, 2008 — Attorney General Steve Six today announced that Kansas will receive nearly $3 million as part of a settlement totaling $389 million with Bristol-Myers Squibb (BMS). The settlements involve 43 states, the District of Columbia and the federal government.
In addition to the settlement, BMS has entered into an agreement with the Office of Inspector General of the U.S. Department of Health and Human Services, under which BMS will be required to report accurately its average sales prices and average manufacturers prices in the future.
“This settlement is a victory for our Medicaid program,” Six said. “This case will serve as a warning that Kansas will not tolerate illegal drug marketing and pricing of prescription medications.”
The settlement addresses allegations that BMS engaged in a number of improper marketing and pricing practices, including:
– Reporting inflated prices for various prescription drugs knowing that Medicaid and various health care programs would use these reported prices to pay for BMS and Apothecon products used by their recipients;
– Paying illegal remuneration to physicians, health care providers, and pharmacies to induce them to purchase BMS and Apothecon products;
– Promoting the sale and use of Abilify, an antipsychotic drug, for pediatric use and for treatment of dementia-related psychosis, uses which the federal Food and Drug Administration has not approved; and
– Misreporting sales prices for Serzone, an antidepressant, resulting in the improper reduction of the amount of rebates paid to the state Medicaid programs.
The National Association of Medicaid Fraud Control Units participated in the investigation, led by Unit Directors from Ohio and Vermont as well as representatives from Massachusetts, New York, and New Mexico.