McKesson, U.S. States Reach $151 Million Accord on Prices

McKesson Corp. (MCK), the largest U.S drug distributor, reached a $151 million settlement with states over claims it caused Medicaid programs to pay too much for prescription drugs.

The agreement resolves allegations that McKesson overbilled states by reporting inflated prices for medications, state attorneys general said today. The deal follows a settlement reached in April with the federal government.

“This settlement holds McKesson accountable for attempting to make millions of dollars in illegal profits,” New York Attorney General Eric Schneiderman, who helped lead negotiations, said in an e-mailed statement.

Kris Fortner, director of communications at San Francisco- based McKesson, said in an e-mailed statement that the company adhered to all applicable laws and regulations and that the claims are “without merit.”

“We did not manipulate drug prices and did not violate any laws,” Fortner said. The settlement was in the best interest of the company’s employees, customers, suppliers and shareholders, according to Fortner.

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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