MARLBOROUGH, Mass.--(BUSINESS WIRE)--Sepracor Inc. (Nasdaq: SEPR) announced today that it is conducting a review of its government price reporting. On January 17, 2008, Sepracor notified the Centers for Medicare and Medicaid Services (“CMS”) that the Company has identified potential errors in its Medicaid Best Price (“Best Price”), including the exclusion of transactions involving the Pennsylvania General Assistance ("PAGA") Program from its calculation of Best Price, for products reimbursed under the Medicaid Drug Rebate Program (42 U.S.C. §1396r-8). Despite the Company’s review of available materials, it remains unclear whether PAGA, a State Pharmacy Assistance Program, is excludable for the purposes of calculating Best Price for the affected periods. If these PAGA transactions had been included in the calculation, they potentially would have set Best Price for some previously reported calendar quarters.
