Daiichi-Sankyo pays $39m to settle allegations
pharmafile | January 12, 2015 | News story | Sales and Marketing | Azor, Benicar, Daiichi Sankyo, Daiichi-Sankyo, Tribenzor, Welchol, kickbacks, us justice
Daiichi-Sankyo will pay the US government and state Medicaid programmes $39 million to resolve claims that it violated the False Claims Act by paying kickbacks to induce doctors to prescribe its drugs.
The decision concerns the US subsidiary of the Japanese pharma giant’s offerings Azor, Benicar, Tribenzor and Welchol – The US Department of Justice (DOJ) confirmed on Friday.
“The Anti-Kickback Statute prohibits payments intended to influence a physician’s ordering or prescribing decisions,” said acting assistant attorney general Joyce Branda for the civil division in DOJ.
The government alleged that Daiichi paid doctors improper kickbacks in the form of speaker fees as part of its ‘Physician Organization and Discussion’ programmes, known as ‘PODs’.
These were run from the beginning of 2005 through to March 2011, alongside other speaker programmes that were run around the same time period.
Allegedly, payments were made to doctors even when doctor participants in PODs took turns ‘speaking’ on duplicative topics over Daiichi-paid dinners, the recipient spoke only to members of his or her own staff in his or her own office, or the associated dinner was so lavish that its cost exceeded Daiichi’s own internal cost limitation of $140 per person.
“Drug companies are prohibited from using lavish entertainment and padded speaker programme payments to induce physicians to prescribe their drugs for beneficiaries of federal healthcare programmes,” says US Attorney Carmen Ortiz for the District of Massachusetts.
“Settlements like this one show that the government will continue to pursue healthcare companies that use kickbacks to promote their products.”
The settlement stems from a complaint filed by former Daiichi sales representative Kathy Fragoules under the whistleblower provisions of the False Claims Act, which authorises private parties to sue on behalf of the US, and to receive a portion of any recovery. Fragoules stands to receive $6.1 million as a result.
Agreeing also to review its internal operations with a view to reform, Ken Keller who is president of Daiichi’s US operations says in a statement: “We are pleased to have finalised these agreements and remain focussed on our core mission of helping people live healthy and meaningful lives.”
Brett Wells
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