Pfizer agrees to pay $784.6 million to resolve Wyeth false claims lawsuit

The US Department of Justice revealed yesterday that pharma giant Pfizer (NYSE: PFE) and its legacy company Wyeth have agreed to pay $784.6 million to resolve allegations that Wyeth knowingly reported to the government false and fraudulent prices on two of its proton pump inhibitor (PPI) drugs, Protonix (pantoprazole) Oral and Protonix IV.

Pfizer acquired New Jersey-based Wyeth for around $68 billion in 2009, about three years after Wyeth had ended the conduct that gave rise to the settlement which was agreed in principle earlier this year (The Pharma Letter February 16).

“This settlement demonstrates our unwavering commitment to hold pharmaceutical companies responsible for pursuing pricing schemes that attempt to manipulate and overcharge federal health care programs - programs that protect the poor and disabled - for drugs sold to commercial customers at much lower prices,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division.