In the 04/25/2013 edition:
US sues Novartis for False Claims Act violations, kickbacks
By A on Apr 25, 2013 07:55 am
The Justice Department announced two days ago it was suing the Swiss pharmaceutical giant Novartis for violations of the False Claims Act that began in 2005. It is alleged Novartis paid kickbacks to at least twenty pharmacies to ““convert” (i.e., switch) patients to Myfortic from competitor drugs and/or to oppose the use of a cheaper, generic immunosuppressant drug.”
Myfortic is a long-term immunosuppressant used for solid organ transplant recipients.
The government alleges Novartis attempted to hide the kickbacks by disguising them as performance rebates, discounts or bonus payments. In one case, Novartis is alleged to have paid a Los Angeles pharmacist hundreds of thousands of dollars to switch 700-1,000 patients to Myfortic.