State Medicaid to get share of pharmaceutical settlement

February 22, 2014 

Kentucky's Medicaid program will receive $303,836 as part of a $172.9 million civil settlement with a pharmaceutical company.

Endo Pharmaceuticals, a subsidiary of Endo Health Solutions, agreed to the settlement as a resolution to allegations that it illegally marketed the drug Lidoderm, according to a news release from the state attorney general's office.

Kentucky's total share of the settlement is $2.5 million, but the federal government will receive $1.74 million of that.

A federal whistleblower lawsuit had been filed in Pennsylvania, alleging that Endo had "unlawfully marketed Lidoderm for use in connection with lower back pain or chronic pain," according to the news release. The Food and Drug Administration had only approved Lidoderm for treating pain from shingles.

"The off-label marketing of drugs is not only illegal, it is unsafe," Kentucky Attorney General Jack Conway said in the release.

In addition to the $172.9 million payment to the states and federal government, the company will pay a $20.8 million criminal fine.

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