Drug companies settle with feds over rebate scheme

CONCORD, N.H. - Attorney General Joseph A. Foster announced on Monday that New Hampshire has joined with other states and the federal government in a $9.5 million settlement with PharMerica Corporation (PharMerica) to resolve civil allegations that PharMerica conspired with Abbott Laboratories (Abbott) through a number of disguised kickback arrangements to increase overall utilization of Depakote and to promote misbranded Depakote.

The states contend that from Jan. 1, 2001, through Dec. 31, 2008, that PharMerica knowingly solicited and received illegal renumeration from drug manufacturer Abbott in the form of rebate agreements that required PharMerica to engage in certain promotional programs, grants, and other financial support. As part of this national settlement, New Hampshire will receive over $160,000 in recoveries from PharMerica.

Depakote is a FDA approved drug used to treat manic episodes associated with bipolar disorder, certain types of seizures, and prophylaxis of migraine headaches. A team from the National Association of Medicaid Fraud Control Units conducted the settlement negotiations on behalf of the states.