Sandoz, Inc., the U.S. subsidiary of Swiss pharmaceutical behemoth Novartis, has admitted no wrongdoing but agreed to a $1.65 million settlement with Idaho to resolve claims surrounding drug pricing.
Sandoz manufactures Fluoxetine, a generic version of Prozac, which had a published average wholesale price of $2.598 in 2003. But Idaho Attorney General Lawrence Wasden's investigation revealed an actual average wholesale price of $0.217 in 2003, a 1,100 percent difference.
"Where published prices are false or misleading, the taxpayers are significantly harmed by excessive Medicaid reimbursements," said Wasden. "Misrepresenting the wholesale price is a violation of the Idaho Consumer Protection Act."
The $1.65 million settlement must be approved by the Fourth District Court of Ada County.