Sepracor may owe government $100 million

MARLBOROUGH, Mass. Sepracor has announced that it has begun a review of its federal price reporting and could have to repay $80 to $100 million in government rebated it received from 2002 to 2007, according to published reports.

The firm said it has informed the Centers for Medicare and Medicaid Services that it may have to restate prices for the federal Medicaid rebate program, other federal programs and state agreements. The company said it provided prices to entities that may not have qualified for rebate programs.

In particular, Sepracor’s review is focusing on transactions involving Pennsylvania’s General Assistance program that were excluded from calculating the best price for which reimbursements were eligible under Medicaid. The review is also focusing on prices reserved for Public Health Service covered entities to customers that weren’t qualified to receive the PHS price.

The potential errors made between 2002 and 2007 may require the company to restate earnings for the six-year period.