Sanofi to pay $20m fine for overcharging US veterans

pharmafile | April 4, 2017 | News story | Manufacturing and Production, Sales and Marketing Sanofi, Sanofi Pasteur, US 

Sanofi Pasteur, the French firm’s vaccines unit, has agreed to pay a $19.8 million settlement over claims it overcharged the US Department of Veterans Affairs (VA).

The department, which offers care and benefits to veterans of war and their families, is covered by a ceiling price for certain drugs, under the Veteran’s Health Care Act, meaning an upper limit is imposed on potential charges for these treatments. In 2012, Sanofi Pasteur voluntarily informed the department of its overcharging, where it wrongfully calculated the bill for covered drugs.

An investigation launched by the VA’s Office of Inspector General verified the overcharging, finding it occurred as far back as 2002, contrary to Sanofi’s belief that it first began in 2007.

From its original disclosure to the settlement of the almost £20 million fine, Sanofi noted that it had “negotiated in good faith” with the government during the investigation, adding “the company is committed to honouring its obligations under the Federal Supply Schedule contract.”

While Sanofi have been forced to pay out a heavy sum due to mistakes with overcharging, the US Justice Department has stated that the company has agreed to not demand reimbursement for any sales to the VA which were miscalculated at a lower-than-usual price.

Matt Fellows

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