Sanofi-Pasteur will pay about $19.9 million to resolve claims that it incorrectly calculated drug prices and overcharged the U.S. Department of Veterans Affairs for drugs under two contracts between 2002 and 2011.
Under the Veterans Health Care Act, drug manufactures may not charge the VA more than a maximum amount, known as the federal ceiling price, for covered drugs.
The company disclosed to the VA that it had incorrectly calculated the federal ceiling price for certain drugs from 2007 to 2011 and overcharged the VA. The Office of Inspector General for the VA investigated the matter, determining that the error resulted in overcharges going back to 2002.
According to the U.S. Department of Justice, the company also agreed not to pursue claims for reimbursement where it contends its error in calculating the federal ceiling price led to a lower price to the VA.
No lawsuit was filed in this matter and there has been no determination of liability.
Sanofi-Pasteur is the vaccines division of Sanofi SA unit Sanofi-Aventis.