Delaware-based AstraZeneca agreed Wednesday to pay the federal government $7.9 million to settle allegations of a kickback scheme that violated the False Claims Act.
The lawsuit, which was filed by two former employees of the pharmaceutical company, alleged that AstraZeneca paid Medco Health Solutions to keep the heartburn medication Nexium as the “sole and exclusive” drug eligible for coverage under certain government healthcare plans.
AstraZeneca allegedly gave Medco price breaks on other products, including Prilosec, which also treats heartburn, and Toprol XL and Plendil, which are used to treat high blood pressure.
“By this agreement we are making important strides in holding drug manufacturers accountable not only in Delaware but nationwide,” said Charlie Oberly, U.S. Attorney District of Delaware.
The two former AstraZeneca employees who filed the lawsuit through the whistleblower provision of the False Claims Act will receive $1.4 million collectively.
The claims resolved in the settlement remain allegations according to the government, with no determination of liability. AstraZeneca, in a statement Wednesday, denies those allegations.
"It is in the best interest of the company to resolve these matters and to move forward with our business of discovering and developing important, life-changing medicines — while avoiding the delay, uncertainty, and expense of protracted litigation," the company's statement read.