Watson to pay $1.7 million in drug pricing settlement

BOISE - Prescription drug manufacturers Watson Pharmaceuticals, Inc. and Watson Pharma, Inc., agreed to pay $1,700,000 in a legal settlement resolving Idaho's claims relating to the "average wholesale prices" reported by the companies, Attorney General Lawrence Wasden said. Watson is among the top five pharmaceutical companies in the United States, and among the top four generic drug companies in the world.

Wasden filed lawsuits against several prescription drug manufacturers, including Watson, in 2007. The lawsuits seek to recover taxpayer money for excessive prices Idaho Medicaid paid for prescription drugs. Idaho Medicaid provides health care services, including prescription drugs, to low-income Idahoans. By law, Idaho Medicaid must reimburse pharmacies at the "estimated acquisition cost" of the drug. Idaho Medicaid primarily uses "average wholesale price," as reported by drug manufacturers, as a basis for determining this amount.

Wasden's office has recovered more than $22 million in average wholesale price settlements with 31 drug manufacturers. Two lawsuits Wasden are still pending against five other drug manufacturers.