South Dakota to Get More than $142K from Drug Settlement

PIERRE, S.D. (AP) — Attorney General Marty Jackley says South Dakota will receive more than $142,000 in a settlement with drug companies accused of overcharging state Medicaid programs.

Jackley says Delaware-based AstraZeneca Pharmaceuticals LP will pay states and the federal government $46.5 million and Pennsylvania-based Cephalon Inc. will pay $7.5 million.

The settlement resolves allegations the companies underpaid drug rebates to the states by treating certain fees paid to wholesalers as discounts.

AstraZeneca says it admits no wrongdoing, that its approach reflected a reasonable interpretation of the law, and state payments were part of the settlement announced by the Justice Department in July.

Jackley says the federal government will keep over $92,000 of South Dakota's settlement portion. The rest will go to the state general fund to offset alleged Medicaid damages in this case.

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