Lundbeck A/S (Lundbeck) announced on 6/6/2018 that its U.S. subsidiary Lundbeck LLC has reached an agreement in principle to resolve the U.S. Department of Justice (DOJ) investigation related to Lundbeck LLC's relationship with and donations to independent patient assistance charitable foundations. As part of the agreement, Lundbeck LLC will pay DOJ USD 52.6 million (approximately DKK 336 million). As part of the agreement, Lundbeck LLC will pay DOJ USD 52.6 million (approximately DKK 336 million). This charge will be recognized as Other operating items, net in the second quarter of 2018 which will be announced on 8 August 2018.
Drug companies are not allowed to subsidize payments for payments enrolled in Medicare for the elderly. However, companies may donate to non-profits providing co-pay assistance as long as they are independent.
The probe has also resulted in settlements with other drug manufacturers. On May 25th Pfizer announced a $23.85 million dollar payment to settle claims, On May 8th Jazz Pharmaceuticals announced a $57 million dollar agreement and in December, United Therapeutics announced a $210 million dollar payment to settle similar claims.