Bayer said that it believed its actions were lawful but that it decided to resolve the charges to avoid further expense and disruption of its business. The settlement was reached Friday. The case against Bayer focused primarily on drugs used to treat hemophilia and AIDS, such as Kogenate, Koate and Thrombate. The suit alleged the drug makers were reporting high wholesale prices to make their drugs more attractive to doctors receiving Medicaid reimbursements. Investigators say that for certain drugs, the greater the disparity between actual and reported prices, the more profit per dose for doctors administering the medications.
Doctors buy the drugs at deep discounts.
Prosecutors said they uncovered documents in which Bayer executives discussed raising their prices to keep pace with competitors' reported increases and keep their drugs attractive to doctors and other providers. Bayer didn't receive Medicaid payments, but the prosecutors argued that the company had caused false claims to be submitted by reporting inaccurate prices. The Bayer settlement still must be approved by several states. The companies have denied wrongdoing. The Associated Press .