Biogen to pay $900 million to settle drug kickback allegations

Biogen pays $900 million to settle a lawsuit that alleged the corporate gave docs kickbacks to encourage them prescribe its medication, the Justice Division introduced on Monday.

A former Biogen worker turned whistleblower, Michael Bawduniak, sued the pharmaceutical firm in 2012 on behalf of the federal authorities beneath the False Claims Act.

Bawduniak alleged Biogen paid kickbacks to docs within the type of talking charges, consulting charges and meals from 2009 by means of 2014 to encourage them to prescribe its a number of sclerosis medication.

The alleged kickbacks resulted in false claims to Medicare and Medicaid for the prescription of Avonex, Tysabri and Tecfidera, in line with the Justice Division.

Biogen pays greater than $843 million to the federal authorities and $56 million to fifteen states to settle the case. Bawduniak will obtain about $250 million of the federal proceeds, in line with the Justice Division.

“The settlement introduced right now underscores the important position that whistleblowers play in complementing the USA’ use of the False Claims Act to fight fraud affecting federal well being care packages,” mentioned Brian Boynton, head of the Justice Division’s Civil Division.

Biogen, in an announcement Monday, denied any wrongdoing within the case. The corporate mentioned it wished to resolve the litigation to give attention to different priorities.

“Biogen believes its intent and conduct was always lawful and acceptable and Biogen denies all allegations raised on this case,” the corporate mentioned. “The U.S. and the states didn’t intervene within the case and the settlement doesn’t embody any admission of legal responsibility by Biogen.”

Biogen disclosed in its second quarter report that it had reached an settlement in precept to pay $900 million to resolve the lawsuit.