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Bristol-Myers Squibb settlement divided among states

Pharma Compliance Alert, July 23, 2008

Allegations of pricing fraud and marketing violations cost Bristol-Myers Squibb (BMS) $515 million last year in a settlement with the federal government. Now states are finding out how much their individual cuts will be.

The federal government and state attorneys general began investigation BMS and its former subsidiary Apothecon in 2001. The claims arose from nine separate whistleblower lawsuits and voluntary disclosures by BMS

The settlement with the states resolves allegations including:

• Reporting inflated prices for various prescription drugs, knowing Medicaid and various federal healthcare programs would use these reported prices to pay for BMS and Apothecon products used by their recipients
• Paying illegal remuneration to physicians, healthcare providers, and pharmacies to induce them to purchase BMS and Apothecon products
• Promoting the sale and use of Abilify, an antipsychotic drug, for off-label uses
• Misreporting sales prices for Serzone, an antidepressant, resulting in the improper reduction of the amount of rebates paid to the state Medicaid programs

The settlement involves 43 states, the District of Columbia, and the federal government. In a release, Florida Attorney General Bill McCollum announced the state will receive $21.5 million, while Massachusetts will receive $9.1 million, according to a release from Massachusetts Attorney General Martha Coakley. North Carolina’s share amounts to $14.8 million.

In addition to the federal and state settlements, BMS entered into a corporate integrity agreement.

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