Rhonda M. Medows, MD, Commissioner	Sonny Perdue, Governor

Georgia Receives $5 Million in Drug Settlement

ATLANTA – Georgia Department of Community Health (DCH) announced that the state will receive $5 million in a drug settlement from Bristol-Myers Squibb Company (BMS) and its former subsidiary Apothecon, Inc. The settlement, which totaled $389 million plus interest, reimburses 43 states, the District of Columbia and the federal government as a result of allegations that BMS participated in inappropriate marketing and pricing practices.

According to a statement released by the National Association of Medicaid Fraud Control Units, allegations of misconduct include:

• Reporting inflated prices for various prescription drugs;
• Paying illegal remuneration to physicians, health care providers, and pharmacies to induce them to purchase BMS and Apothecon products;
• Promoting the sale and use of Abilify, an antipsychotic drug, for pediatric use and for treatment of dementia-related psychosis, uses which the federal Food and Drug Administration has not approved; and
• Misreporting sales prices for Serzone, an antidepressant, resulting in the improper reduction of the amount of rebates paid to the state Medicaid programs.

Georgia was represented in settlement negotiations by a team from the National Association of Medicaid Fraud Control Units.

For more information about the Georgia Department of Community Health, visit www.dch.georgia.gov.