AstraZeneca and Cephalon pay to resolve False Claims Act allegations

Anglo-Swedish pharma major AstraZeneca (LSE: AZN) has agreed to pay the United States and participating states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department has announced.

Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the USA, and the remainder to states participating in the settlement.

In a separate settlement arising out of the same case, Cephalon (which was acquired by Israel’s Teva Pharmaceutical Industries [NYSE: TEVA] in 2011) has agreed to pay the USA and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the USA, and the remainder to states participating in the settlement.