The British drugmaker GlaxoSmithKline has agreed to pay 150 million US dollars to settle US government charges that it fraudulently priced two anti-nausea drugs purchased by federal health-care programs, the US Justice Department said Tuesday.
The company is accused of violating the US False Claims Act in the sale and marketing of the anti-nausea prescription drugs Zofran and Kytril for cancer patients under treatment.
The Justice Department said Glaxo engaged in a scheme to inflate the price of the drugs for Medicare and Medicaid programs, which reimburse health care providers based on the manufacturers' prices.
A Justice Department statement said it "will not tolerate fraudulent pricing practices designed to reap profits for drug companies and doctors at the expense of health care programs for the poor and the elderly."
Glaxo admitted no wrongdoing in a statement, but agreed to settle the case to avoid the delay, expense and uncertainty of litigation.
Source: Xinhua