McKesson to Pay $151 Million to Settle Drug-Pricing Suit

McKesson Corp. will pay $151 million to 29 states over allegations the company artificially raised Medicaid drug prices for years, the latest settlement over claims the pharmacy supply chain overcharged for prescription medications.

McKesson, the nation's largest drug wholesaler by revenue, deliberately drove up the prices of some 1,400 brand-name drugs from 2001 to 2009, state and federal officials alleged in a lawsuit. Prices for some widely used blockbuster drugs, like Pfizer Inc.'s Lipitor or Eli Lilly & Co.'s Prozac, rose by as much as 25%, causing Medicaid programs to overpay by millions, state officials said.

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Source: The Wall Street Journal