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US DoJ launch investigation into Acadia Pharmaceuticals

Published on 11/03/19 at 10:46am
Image Credit: Another Believer

The US Department of Justice has launched an investigation into the sales and marketing practices of San Diego firm Acadia Pharmaceuticals in relation to Nuplazid, a psychosis drug for those with Parkinson’s disease.

Nuplazid, an antipsychotic for those suffering from hallucinations and delusions with Parkinson’s, received FDA approval in 2016.

As revealed in the company’s SEC filings, Acadia has received a criminal investigative demand (CID) for documents and information under the False Claims Act. The origins and focus of the investigation have not yet been made public.

The False Claims Act can be used in health care fraud cases including those in which there are allegations of kickbacks to doctors or off-label marketing.

“CIDs are unfortunately common — but in the same way that health care fraud is unfortunately common. They signal that DOJ is aware of credible allegations of fraud,” said Jim Barger, an attorney who specializes in False Claims Act litigation and a professor at the University of Alabama School of Law.

“Companies and investors should take CIDs very seriously and proceed with caution. They are not to be shrugged off as some routine inquiry.”

“Acadia is committed to a culture of compliance and we foster business practices grounded in responsible and ethical behaviour intended to fully comply with applicable laws and regulations,” Acadia said in a statement.

Louis Goss

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