Bayer Makes Tentative Deal in Drug-Price Probe
WASHINGTON - In the first settlement of a state and federal investigation of drug-industry pricing practices, a US unit of Bayer AG has tentatively agreed to pay $14 million to resolve allegations that it caused Medicaid to overpay for its drugs. Bayer, which has confirmed a settlement, has not admitted wrongdoing. The settlement requires that the company report more accurate price information for all of its drugs to state and federal regulators. In addition, the company must cooperate with continuing investigation.
More than 20 drug companies are under current investigation, including Abbott Laboratories, Bristol-Myers Squibb Co., Glaxo Wellcome PLC's US unit, and SmithKline Beecham PLC. All companies have denied any wrongdoing. For more information visit www.hcfa.gov/medicaid.
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