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State To Receive $663,000 Pharmaceutical Fraud Settlement

Rapamune is a drug that prevents the body from rejecting a transplanted organ.

The state is receiving more than $660,000 as part of a settlement with Wyeth Pharmaceuticals.  The federal government and multiple states filed two lawsuits against Wyeth alleging the company promoted the use of its kidney transplant drug Rapamune for unapproved uses.

Indiana Attorney General’s office spokesperson Bryan Corbin says the Medicaid program was forced to pay ineligible billings due to Wyeth’s illegal conduct.

“Through this enforcement action that the Medicaid fraud unit has undertaken, we are able to recover this money, and return it to the Medicaid program where it is used to fund Medicaid service,” Corbin says.

Wyeth agreed to pay more than $250 million to resolve the multi-state lawsuit.  The company also agreed to pay a criminal fine of more than $150 million.  A portion of the money will go to two whistleblowers who exposed Wyeth’s practices.

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