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Idaho AG settles with two companies on Medicaid drug pricing

Warrick Pharmaceuticals Corp. and Schering-Plough Corp. (Merck & Co.) will pay $750,000 to resolve Idaho claims involving drug pricing.

The recently settled case is part of a larger group of cases related to average wholesale drug prices and Medicaid, Idaho Attorney General’s Office spokesman Bob Cooper said.

Idaho in June 2007 sued Warrick, Schering-Plough, Aventis, Forest Laboratories Inc., Mylan, Novartis, Pfizer, Pharmaceia and Smithkline Beecham (GlaxoSmithKline). The state contends defendants falsely reported wholesale prices and caused Idaho Medicaid to reimburse providers at higher rates.

Warrick and Schering-Plough are the first defendants to settle in this lawsuit, Cooper said.

The Idaho Attorney General’s Office stated Warrick in 2003 published an average wholesale price of $1.259, but the Idaho investigation found an actual average of 25 cents. The companies did not admit wrongdoing in the settlement, which awaits Ada County Fourth District Court approval.

Settlement proceeds include $615,531 to be deposited in the Idaho General Fund for legislative appropriation and $50,000 for the AG’s Office consumer protection account to cover costs in the case.

The office now has resolved eight cases on average wholesale drug prices since 2005 and recovered about $9.4 million overall. Three cases, naming more than 20 drug manufacturers, are pending.

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