Takeda, Dey settle for $6.75M for inflating drug prices

Two pharma companies forced to pay CMS over drug inflation charges. Source: Piper Report

Takeda Pharmaceuticals North America has agreed to pay Alabama $2 million and Dey has agreed to pay $4.75 million to settle claims that they fraudulently inflated their reported prices for prescription drugs, causing the state Medicaid program to overpay pharmacists and doctors.

Alabama Attorney General Troy King said that Takeda inflated the price of the diabetes drug Actos. The claim against Dey involved a number of drugs prescribed primarily for pulmonary diseases and asthma.

Despite the settlement, the Osaka, Japan-based Takeda and Dey, a unit of the Pittsburgh-based Mylan, said they do not admit unlawful conduct.

King filed a lawsuit in 2005 alleging massive overcharges to the Alabama Medicaid Agency over many years. He said his case will continue against 71 other defendants.