GlaxoSmithKline will pay $150 million to settle claims it overcharged the U.S. government for anti-nausea drugs Zofran and Kytril.
The government charged Glaxo with engaging in a scheme to inflate the price of Zofran and Kytril for the Medicare and Medicaid programs. The drugs are used to counter nausea experienced by chemotherapy and radiation patients.
The Justice Department said the company charged healthcare providers less for the drugs, knowing the providers would get to keep the difference and would be more likely to prescribe the drugs again.
"We believe that our price reporting was lawful and was done in good faith," a GSK spokeswoman told the Associated Press, "but we've agreed to this settlement to avoid the delay, expense and uncertainty of litigation."