STI Pharma Wins Suit to Reclassify Drug for Medicaid Rebate

The Centers for Medicare and Medicaid Services improperly refused to reclassify STI Pharma LLC’s Sulfatrim product for purposes of calculating the amount of Medicaid rebates the drug company was required to pay states from 2013 to 2016, a federal court in the District of Columbia said.

The controversy centered around the agency’s definition of “noninnovator multiple source drugs,” as used in the pre-2019 version of the Medicaid Drug Rebate Program. Under that law, the amount of rebates drugmakers were required to pay states for the costs of drugs paid for by Medicaid was calculated based on whether the drugs were ...