The drugmaker reached the deal with the US Justice Department over allegations that the price of ita Anzemet anti-nausea med for cancer patients was inflated in order to boost reimbursement rates under Medicare and other government health programs. And the feds say the price was higher than what was charged other customers.

The difference between the reimbursement rate of the federal health care programs and the actual price paid by health care providers is commonly known as the “spread.” The larger the spread on a drug, the larger the profit or return on investment for the provider. Because reimbursement from federal programs was based on the fraudulent, inflated prices, the US contended that Aventis caused false and fraudulent claims to be submitted to federal health care programs.

“Marketing drugs to doctors based on potential profits undermines confidence in the integrity of our health care system because it treats beneficiaries like commodities instead of patients,” says Assistant Attorney General Peter Keisler, in a statement. “The Justice Department will continue to hold drug companies accountable for fraudulent pricing schemes designed to give windfalls to drug companies and doctors at the expense of federal health care programs for the poor and the elderly.”

In a statement, the drugmaker emphasized there was no admission of wrongdoing in what was described as a ‘legacy matter.’ What does that mean? The fraudulent activity allegedly took place between Sept. 1, 1997, and June 30, 2004, and Aventis was subsequently purchased by Sanofi.

Of the more than $190 million settlement, the federal recovery is $179.8 million, and the states’ and Washington DC’s recovery share of Medicaid is $10.6 million. The drugmaker expects to cover the settlement with existing reserves and its US operation has signed a corporate integrity agreement for the next five years.

The investigation began after the filing of a False Claims Act lawsuit by Ven-A-Care of the Florida Keys, a home-infusion company. The act allow a private person to file a qui tam, or whistleblower, suit on behalf of the government. As part of this settlement, the Ven-A-Care whistleblowers will receive approximately $32 million as their share of the settlement.