Bristol-Myers Squibb reaches tentative deal to end long-running Medicaid rebate lawsuit

Bristol-Myers Squibb
Bristol-Myers Squibb is only the latest drugmaker accused of fudging drug prices to manipulate Medicaid rebates. (Bristol-Myers Squibb)

Lawsuits over Medicaid rebates are a fact of life in pharma, and in one particularly long-running case, Bristol-Myers Squibb stands accused of fiddling with its prices to lower payments. Now, after seven years in litigation, that lawsuit could be nearing an end. 

Bristol reached an "agreement in principle" in January to settle a 2013 whistleblower lawsuit accusing the company of manipulating the average manufacture price of its drugs in order to underpay Medicaid rebates between 2007 and 2016, according to an SEC filing.

BMS said the terms of the agreement, which were not disclosed, were pending negotiation. The company couldn't "provide assurances that its efforts to reach a final settlement will be successful."

Watch the Free Webinar

Chemistry Through Biology: Translating Molecular Biology Technologies into Practical Processes for API Production

Learn about the key advances and critical hurdles in transforming emerging molecular biology technologies into practical applications with commercially viable processes.

If Bristol closes its agreement, it would put an end to a long-running whistleblower suit that once wrapped up multiple drugmakers but was later narrowed to target BMS alone. 

RELATED: Bristol-Myers Squibb must face whistleblower suit claiming underpaid Medicaid rebates

Suggested Articles

Which rollouts might suffer most? Those that treat chronic diseases, require doctors to administer them or face current competition, analysts say.

Novartis and Incyte will put their blockbuster JAK inhibitor into phase 3 clinical trials as a possible treatment for COVID-19, the drugmakers said.

The Cannes Lions canceled its advertising creativity conference for 2020 after media reports that many large ad agencies planned to opt out.