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News Release

For Immediate Release
February 22, 2013

Karin M. Eckel, Director of Medicaid Fraud
(603) 271-1246

Attorney General Announces Medicaid Settlement with Healthpoint, Ltd.

Attorney General Michael A. Delaney announces that New Hampshire has reached a settlement agreement with Texas-based pharmaceutical manufacturer Healthpoint, Ltd. and its general partner, DFB Pharmaceuticals, to resolve allegations that Healthpoint caused false claims to be submitted to the New Hampshire Medicaid program for an unapproved drug, Xenaderm. As part of this national settlement, New Hampshire will receive more than $54,000 in recoveries from Healthpoint and DFB.

The settlement resolves federal and state false claims act cases brought against Healthpoint by the United States Department of Justice and fifteen plaintiff states. The federal and state complaints alleged Healthpoint marketed Xenaderm without FDA approval by modeling it on a pre-1962 drug that the FDA had never reviewed-notwithstanding the FDA's determination in the 1970s that Xenaderm's principal ingredient was "less-than-effective" for its intended use. Since 1981, federal health care programs, including Medicaid, have not paid for "less-than-effective" drugs.

A National Association of Medicaid Fraud Control Units team participated in the settlement negotiations with Healthpoint on behalf of the settling states.

New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301
Telephone: 603-271-3658