Drugmaker Actelion Agrees To Pay $360M To Settle Kickback Investigation
The Justice Department alleged that Actelion Pharmaceuticals violated federal law by using a foundation fund to funnel kickback payments aimed at inducing patients to buy its drugs. Actelion was bought by Johnson & Johnson in 2017, after the alleged actions took place, and admits no wrongdoing as part of the settlement.
The New York Times:
Drug Maker Pays $360 Million To Settle Investigation Into Charity Kickbacks
The drug maker Actelion Pharmaceuticals has agreed to a $360 million settlement stemming from an investigation into whether the company illegally funneled kickbacks through a patient-assistance charity, federal prosecutors said Thursday. Actelion, which was acquired by Johnson & Johnson in 2017 and makes expensive drugs to treat a rare lung condition, is the latest pharmaceutical company to settle federal inquiries into their ties to patient-assistance groups, including whether companies have used the patient programs to increase the price of their drugs. (Thomas, 12/6)
The Wall Street Journal:
J&J’s Actelion To Pay $360 Million In Federal Probe Of Payments To Charity
The Justice Department noted all of Actelion’s alleged actions covered under the settlement occurred before Johnson & Johson purchased the company in 2017. Actelion had obtained data from the foundation that detailed how many patients were using Actelion drugs and how much the foundation expected to spend on those patients in the future, prosecutors said. That information was used to budget future payments to the foundation, confirming that its contributions were enough to cover copays patients owed for its drugs, but not for patients taking competitors’ medicines, the settlement agreement said. (Maidenberg, 12/6)
The Associated Press:
Drug Company Actelion To Pay $360M In Kickback Probe
Federal prosecutors say South San Francisco-based Actelion illegally used a purportedly independent charity to cover the co-payments of thousands of Medicare patients taking its pulmonary arterial high blood pressure drugs. Prosecutors say that helped the company convince patients to buy its drugs when the prices it set would have otherwise prevented them from doing so. (12/6)
Reuters:
J&J Unit To Pay $360 Million To U.S. To Resolve Charity Kickback Probe
Drug companies are prohibited from subsidizing co-payments for patients enrolled in the Medicare government healthcare program for the elderly. But companies may donate to non-profits providing co-pay assistance as long as they are independent. Amid increased attention on rising drug prices in the United States, there has been concern that donations from drugmakers to patient-assistance groups may be contributing to price inflation. (Raymond, 12/6)
