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State gets $11.4M from pharmacy settlements

29-Feb-2008: The state of Tennessee has received $11.4 million this week from settlements with two national pharmaceutical companies, according to the office of Tennessee Attorney General Bob Cooper.

The state received $11.2 million from drug manufacturer Merck Corp. Inc. (NYSE: MRK) resolving allegations the company failed to pay Medicaid rebates under the Federal Medicaid Drug Rebate statute. The settlements involve 49 states, the District of Columbia and the federal government and total $649 million.

In Tennessee, the case was handled by the Tennessee Attorney General's Office, the Tennessee Bureau of Investigation Medicaid Fraud Control Unit and the TennCare Bureau.

The attorney general also settled a civil law enforcement action against Barr Pharmaceuticals Inc. (NYSE: BRL) involving antitrust allegations.

The lawsuit, joined by 34 other states and the District of Columbia, alleged that Barr Pharmaceuticals and distributor Warner Chilcott prevented generic versions of Ovcon, a prescription oral contraceptive, from reaching the marketplace. The states settled their lawsuit against Warner Chilcott in 2007 for $5.5 million.

Tennessee's share is $141,539.28 in penalties and costs of the investigation.


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