Dey Pharma Settles Federal Pricing Case
BASKING RIDGE, N.J., Dec. 20, 2010 /PRNewswire-FirstCall/ -- Dey Pharma L.P. today announced that it has settled a lawsuit brought against it by the U.S. Department of Justice in September 2006 pertaining to Medicare and Medicaid reimbursements paid by the federal government to pharmacists and other healthcare providers. In exchange for a release of claims, Dey has agreed to pay $280 million.
Pursuant to the 2007 acquisition agreement between Mylan Inc. (Dey's parent company) and Merck KGaA (Dey's former parent company), Merck KGaA is responsible for paying the full amount of this settlement as well as all costs and other expenses associated with pending and future-related Medicare and Medicaid reimbursement lawsuits involving Dey. The lawsuit was initiated prior to Mylan's acquisition of Dey.
The settlement agreement confirms that the resolution of the case does not constitute an admission, finding, or evidence of fault, liability or wrongdoing by Dey.
Dey Pharma L.P., a subsidiary of Mylan Inc. (Nasdaq: MYL), is a specialty pharmaceutical company focused on the development, manufacturing and marketing of prescription drug products for the treatment of respiratory diseases, severe allergic reactions and psychiatric disorders. The company puts patients first and facilitates efficient, cost-effective partnerships with customers. For more information, please visit www.dey.com.
SOURCE Mylan Inc.
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