Texas has reached a $41.5 million settlement with pharmaceutical companies Pfizer and Tris Pharma over allegations of drug adulteration and fraud against the state’s Medicaid program. The settlement resolves a 2023 lawsuit that accused the companies of manipulating quality control tests for a medication used to treat Attention Deficit Hyperactivity Disorder (ADHD).

According to Texas Attorney General Ken Paxton, the companies provided adulterated drugs to children for years and altered test results to obtain Medicaid reimbursement. The medication in question, Quillivant XR, is a liquid drug that failed to dissolve in the body as intended, rendering it ineffective. Tests conducted between 2012 and 2018 revealed the drug’s inconsistency, Paxton stated.

Pfizer and Tris Pharma have denied any wrongdoing, with both companies issuing statements to that effect. Pfizer affirmed its commitment to patient safety and well-being, stating that it found no impact on the safety of the product. Similarly, Tris Pharma maintained that it stood by the quality of Quillivant and its benefits to patients.

The case originated from a whistleblower complaint filed by Tarik Ahmed, Tris Pharma’s technology chief from 2013 to 2017. NextWave Pharmaceuticals developed Quillivant XR, which was acquired by Pfizer in 2012. Tris Pharma manufactured the drug on behalf of Pfizer until 2018, when it purchased the product line.

The settlement marks a significant development in the case, with Texas holding pharmaceutical companies accountable for their actions. As Attorney General Paxton noted, the state will not tolerate fraud and deception, particularly when it involves taxpayer-funded programs like Medicaid. The outcome of this case may have implications for the pharmaceutical industry, emphasizing the importance of transparency and accountability in drug development and distribution.