Drug Company Settles With State
A prescription drug company has reached a $1.7 million settlement with Idaho to resolve a dispute over inflated wholesale drug price. Idaho Attorney General Lawrence Wasden says the deal with Par Pharmaceutical Cos., Inc., is the latest focusing on wholesale prescription drug pricing since 2005. The payment will be used to reimburse taxpayers for excessive prices paid for drugs through the state Medicaid program. A state investigation showed that a company unit responsible for a generic version of Prozac had a published average wholesale price in 2003 nearly 4,000 percent higher than the actual wholesale price. State Medicaid officials use the average wholesale price reported by manufacturers as a basis for reimbursing pharmacies. Wasden has resolved nine wholesale drug price cases that so far have netted the state $11 million.