Sun, Aug 10, 2003 - Page 11 News List

Bristol-Myers receives subpoena over drug pricing

BLOOMBERG

Bristol-Myers Squibb Co, the maker of Excedrin painkillers, said it received a subpoena from the US Attorney in Boston over pricing and marketing of drugs covered by Medicare and Medicaid.

Last month, New York-based Bristol-Myers said it started an internal review of its sales and marketing practices to make sure they don't violate laws.

The drugmaker shared information about its probe with representatives of the US attorney, who then subpoenaed the company, according to a regulatory filing.

The internal review focuses on whether Bristol-Myers's practices comply with anti-kickback laws and pricing requirements under the Medicaid program, the drugmaker said in its filing with the US Securities and Exchange Commission.

Medicaid, which is funded by the US and states, is the government health-insurance program for the poor. Medicare is the US health-insurance program for the elderly and disabled.

Government prosecutors have been cracking down on drugmakers who failed to give the best price for a medicine to government health-insurance programs or whose marketing practices resulted in fraudulent reimbursement claims.

Bristol-Myers and other drug companies have received requests for documents from the Office of the Inspector General of the Department of Health and Human Services and several states as well as the US attorney in Boston.

The filing didn't say when the subpoena was received. The investigations could result in criminal or civil claims, according to the filing.

Shares of Bristol-Myers fell US$0.07 to US$26.02 as of 4:15pm in New York Stock Exchange composite trading.

Samantha Martin, a spokeswoman for the US attorney in Massachusetts, didn't return a call made Friday evening.

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