Large Molecule

Sanofi Resolves Vax Overcharge Claims for $19.8M

Apr 04, 2017

Sanofi-Pasteur, the vaccines division of Sanofi-Aventis, has agreed to pay $19.8 million to resolve claims that the drugmaker incorrectly calculated drug prices, which resulted in overcharging the US Department of Veterans Affairs.

Under the Veterans Health Care Act, 38 U.S.C. 8126, drug manufactures may not charge the VA more than a maximum amount, known as the Federal Ceiling Price (FCP), for covered drugs. Sanofi disclosed to the VA Department in 2012 that it had made an accounting error for certain drugs involved in two contracts between 2002-2011.

Sanofi mentioned that for some products, the miscalculation led to a lower price for the VA, but the company will not seek reimbursement for the undercharges.

Read the DOJ release