The company faced allegations ranging from kickbacks and unfair pricing to paying pharmacies and wholesalers "improper inducements," resulting in losses of 9 million to state Medicaid programs. A September Department of Justice ruling determined the company would pay about 0 million to several states.
Apothecon, a former generics subsidy of Bristol-Myers, was a major player in the allegations. Also under question was improper and illegal marketing of Abilify for use in vulnerable children and the elderly, although it had not been an approved antipsychotic medication in either population at the time. Similarly, there were inaccurate pricing reports for the antidepressant, Serzone, and the company illegally paid physicians and other healthcare providers to promote the use of its products to the poor, according to the suit.
The suit is more than just a monetary one, as Bristol-Myers Squibb is now in a Corporate Integrity Agreement with the United States Department of Health and Human Services to help prevent future misdeeds. The payments went out Tuesday.
NOTE: Medicaid is a health insurance program for the poor that is financed by state and federal governments.