The FINANCIAL — Pfizer Inc. reported on February 16 that its Wyeth subsidiary has reached an agreement in principle to resolve claims alleging that Wyeth’s practices relating to the calculation of Medicaid rebates for its drug Protonix (pantoprazole sodium) between 2001 and 2006, several years before Pfizer acquired Wyeth in 2009, violated the Federal Civil False ClaimsAct and other laws.
When finalized, the agreement in principle is expected to fully resolve cases pending in Federal District Court for the District of Massachusetts before the Honorable Douglas P. Woodlock, according to Pfizer.
Under the agreement in principle, Wyeth will make a payment of $784.6 million to resolve these claims. The agreement in principle does not include an admission of liability by Wyeth. The resolution is subject to the negotiation of final settlement agreements and court approval.
“We are pleased to have reached an agreement in principle to resolve these cases, which involve historic conduct that occurred at least 10 years ago, before Pfizer acquired Wyeth,” said Doug Lankler, Executive Vice President and General Counsel. “The resolution of these cases reflects a desire by the Company to put these cases behind us and to focus on the needs of patients.”
As a result of the agreement in principle, Pfizer is reissuing its financial results prepared in accordance with U.S. generally accepted accounting principles for the fourth quarter and full year of 2015, originally released on February 2, 2016, to reflect this $784.6 million charge recorded in Other (income)/deductions––net in the accompanying unaudited Consolidated Statements of Operations and notes thereto. The Company’s Non- GAAP adjusted financial information for the fourth quarter and full year of 2015, which was issued on February 2, 2016, was not affected by the charge.