LANSING (WKZO-AM) — Pfizer has agreed to pay $785 million to 35 states and the federal government because of shady business the drug maker didn’t commit.
It was Wyeth that was charged with cheating the Medicaid Drug Rebate Program by underpaying rebates between 2001 and 2006. The suit claimed they “gamed the system” by juggling numbers.
When Pfizer purchased Wyeth in 2009, they became liable for the smaller firm’s previous misdeeds.
Michigan Attorney General spokesperson Andrea Bitely said Michigan’s share of the settlement is just over $17.1 million. Patients won’t see any of it. Michigan will spend some of its share on rooting out Medicaid fraud.
The underpayments were made for a drug that treats acid reflux called Protonix.
It isn’t the biggest fine ever paid by a drug manufacturer, but it’s one of the larger ones.
