The Delaware Department of Justice has recovered more than $1 million for the Delaware Medicaid program through a settlement with Bristol-Myers Squibb Company and its former subsidiary Apothecon, Inc., Attorney General Beau Biden announced Monday.
The settlement resolves allegations that BMS illegally marketed and priced prescription medication that cost states’ Medicaid programs. The national settlement, involving 43 states, the District of Columbia, and the federal government, totals $389 million plus interest.
Recovered for the Delaware Medicaid program was $1.1 million. Delaware has received $561,712, including restitution of $274,184 for the Delaware Medicaid program and a penalty of $287,528 that will be paid to the state’s general fund. The balance was returned to federal authorities.
BMS was accused of improper practices including reporting inflated prices for prescription drugs; illegally remunerating physicians, health care providers and pharmacies to induce them to purchase its products; promoting the sale and use of the antipsychotic drug Abilify for uses not approved of by the federal Food and Drug Administration; and misreporting sales prices for the antidepressant drug Serzone.