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Sanofi Pasteur to Pay $19.8 Million for Overcharging VA
Sanofi Pasteur, a Delaware corporation headquartered in Swiftwater, Pennsylvania, has agreed to pay $19,868,194 to resolve claims that it incorrectly calculated drug prices and thereby overcharged the U.S. Department of Veterans Affairs (VA) for drugs under two contracts between 2002 and 2011.
The company, which is the vaccines division of Sanofi-Aventis, disclosed to the VA that it had incorrectly calculated the Federal Ceiling Price (FCP) for certain drugs from 2007 to 2011 and overcharged the VA. The Office of Inspector General for the VA investigated the matter, and it determined that the error resulted in overcharges going back to 2002.
“Overcharging VA depletes funds that are available to care for our veterans,” said Director of the Healthcare Resources Division Mark Myers of Veterans Affairs, Office of Inspector General. “We will continue to hold companies accountable for errors in drug pricing.”
Under the settlement, in addition to paying approximately $19.8 million, Sanofi Pasteur has agreed that it will not pursue claims for reimbursement for sales where it contends its error in calculating the FCP resulted in a lower price to the VA.
Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division stated, “It is important that pharmaceutical companies provide complete, accurate, and current information to the VA about the pricing of their drugs. The Department of Justice will ensure that pharmaceutical companies follow the rules for drug pricing when selling to the government.”
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the Office of Inspector General of the Department of Veterans Affairs. No lawsuit was filed in this matter and there has been no determination of liability.
Mandatory Facts:
Defendant: Sanofi Pasteur
Criminal Charges: Overcharging the U.S. Department of Veterans Affairs
Date: 2002-2011
Outcome: Sanofi Pasteur agreed to pay $19,868,194
City and State: Swiftwater, Pennsylvania
Key Facts
- State: Delaware
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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