Pfizer to pay $784.6 million to resolve drug discount case

Pfizer has agreed to pay $784.6 million to resolve a 14-year-old lawsuit claiming its Wyeth unit overcharged the government by hiding the discounts it was giving hospitals for drugs used to treat acid-related damage to the esophagus. U.S.

Pfizer has agreed to pay $784.6 million to resolve a 14-year-old lawsuit claiming its Wyeth unit overcharged the government by hiding the discounts it was giving hospitals for drugs used to treat acid-related damage to the esophagus. U.S. Attorney Carmen Ortiz said the hidden discounts meant that Medicaid paid "hundred of millions of dollars" more for the drugs than it should have from 2001 to 2006. Pfizer acquired Wyeth in 2009. The accord covers bundled discounts given for pantoprazole sodium (Protonix Oral and Protonix IV). Pfizer did not admit liability in the settlement. "We are pleased to have finalized the agreement to resolve these cases, which involve historic conduct that occurred at least 10 years ago, before we acquired Wyeth," said Pfizer General Counsel Doug Lankler. "The resolution of these claims reflects our desire to put these historic cases behind us and to focus on the needs of patients."