Novartis' Sandoz unit has agreed to pay $150 million Swiss francs to settle claims it charged the US and state governments inflated prices for drugs, a Swiss newspaper reported on Sunday. Under the deal Novartis will pay the US government $86.5 million and the states of California and Florida $40 million, and $15.2 million respectively. Ven-a-Care, a drug company from Florida, will receive $8.3 million.
"Sandoz agreed to the settlement to avoid further costs, unpleasantness and the uncertainty of a long-winded court hearing," Novartis spokeswoman Isabel Guerra told Der Sonntag newspaper. Novartis made a provision for the $150 million in the second quarter, the paper said.