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The Department of Justice has filed a counterfeiting lawsuit against Teva Pharmaceuticals USA Inc. and Teva Neuroscience Inc., accusing them of violating the Anti-Kickback Statute by illegally paying Medicare payments for multiple sclerosis treatment Copaxone through foundations claimed to be independent.
Federal law prohibits pharmaceutical companies from offering or paying customers as incentives to use their products. The DOJ claims that due to the coverage of copayments from Medicare patients Teva was able to get patients to use Copaxone while significantly increasing the price.
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“Drug manufacturers offering kickbacks to increase profits – as claimed in this case – increase health care costs for everyone and undermine public confidence in the health care system,” Special Agent in Charge Phillip M. Coyne of the Department of Health and Human Office ‘Office of Inspector General said in a statement. “Our agency, which works closely with our law enforcement partners, will continue to investigate such corrosive regulations.”
FOX Business reached out to Teva for comment, but it did not respond immediately.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| TEVA | TEVA PHARMACEUTICALS INDUSTRIES LTD. | 10.48 | -1.11 | -9.58% |
The lawsuit, filed in federal court in Massachusetts, alleges that from 2007 to 2015, Teva made payments to The Assistance Fund and Chronic Disease Fund with the understanding that the funds would then cover the payments to Copaxone patients, who were referred by Advanced Care Scripts Inc. , a pharmacy that Teva used to refer patients with copies of Medicare.
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The DOJ claims that in the same period Teva increased the price of a year’s supply of Copaxone from roughly $ 17,000 to more than $ 73,000.
“The department is working to stop pharmaceutical companies from using foundations as funnels for funnels of funnels for Medicare patients, and to offer disproportionate medical expenses at the expense of U.S. taxpayers,” said Assistant Attorney General Ethan P Davis of the Civil Division’s Civil Division. “We will continue to refute these illegal kickback schemes that undermine the integrity of federal health care programs.”
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