Bloomberg News

GlaxoSmithKline Among Companies Paying $25 Million to State

February 07, 2012

(Updates with details of legal claim in second paragraph.)

Feb. 7 (Bloomberg) -- Actavis Group HF and Merck & Co. Inc.’s Schering-Plough were among five companies that paid a total of $25.2 million to settle claims that they overcharged Louisiana for drugs for low-income patients.

The two companies and Boehringer Ingelheim GmbH, Dey Pharma LP and GlaxoSmithKline Plc resolved civil claims that they inflated drug prices to get larger reimbursements from the state’s Medicaid program, Louisiana Attorney General James “Buddy” Caldwell said today in an e-mailed statement. The state claimed the companies misreported average wholesale prices for the drugs.

Louisiana has sued more than 100 drug companies, accusing them of fraud and violating the state’s unfair trade practices and consumer protection law. The statement didn’t specify the amount that each company is paying.

Representatives of GlaxoSmithKline, Actavis, Boehringer Ingelheim and Dey Pharma didn’t immediately return phone calls. Ron Rogers, a spokesman for Merck, didn’t have an immediate comment.

Actavis is a unit of Novator EHF, an Icelandic investment firm. Dey Pharma is owned by Mylan Inc.

--Editors: David Glovin, Michael Hytha

To contact the reporter on this story: Laurence Viele Davidson in Atlanta at lviele@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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