McDaniel Announces $11 Million Settlement With Drug Manufacturer Merck

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February 07, 2008

LITTLE ROCK - Today, Attorney General Dustin McDaniel announced that the Arkansas Medicaid program will receive $11,371,948 as part of two separate global settlements totaling $649 million with Merck & Co., Inc.. The settlements involve 49 states, the District of Columbia and the federal government. Merck is the manufacturer of the drugs Zocor, Vioxx, and Pepcid. The settlement resolves allegations that Merck failed to pay rebates due state Medicaid Programs under the Federal Medicaid Drug Rebate statute.

In addition to the monetary recovery, Merck has entered into a Corporate Integrity Agreement with the United States Department of Health and Human Services' Inspector General. The Corporate Integrity Agreement will include provisions that will ensure that Merck will market, sell and promote its products in accordance with all Federal health care program requirements. Merck did, however, begin voluntary compliance initiatives associated with their sales and marketing activities prior to learning of the government's investigation of the conduct associated with these settlements.

"This is a significant recovery for our Medicaid program," Attorney General Dustin McDaniel said. "This case should send a message to other Pharmaceutical companies that the government will not tolerate rebate avoidance through creative interpretation of rules that advance their drug marketing programs."