Under Medicaid, drug companies must report to the government the best prices they offer other customers on brand-name drugs. Drugmakers must then pay rebates to state Medicaid programs, based on those best prices, so Medicaid gets the same discounts as other large customers.
But in this case, the government alleged that Wyeth, which Pfizer acquired in 2009, gave thousands of hospitals discounts on two of its proton pump inhibitor drugs, Protonix Oral and Protonix IV, and did not report those discounts to Medicaid.
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