The vaccines unit of French pharmaceutical company Sanofi SA will pay a $19.9 million fine for overcharging the U.S. Department of Veterans Affairs for two products between 2002 and 2011.
By law, drug manufacturers cannot charge the VA more than a maximum level called the Federal Ceiling Price for drugs.
The Justice Department said Monday that Sanofi Pasteur notified the VA that it had incorrectly calculated the price for some medicines from 2007 to 2011, and thereby overcharged the VA.
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"Overcharging VA depletes funds that are available to care for our veterans,"said VA director of the Healthcare Resources Division Mark Myers. "We will continue to hold companies accountable for errors in drug pricing."
An investigation by the VA's Office of Inspector General then determined the overcharges dated back to 2002.
Sanofi Pasteur, based in Swiftwater, Pennsylvania, also agreed not to seek reimbursement for sales where it undercharged the VA.
The government did not identify the products involved.