World-recognized brand Pfizer has agreed to a nearly $60 million financial agreement to settle claims that a wholly-owned subsidiary, Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), breached federal healthcare claims regulations.
According to supporting settlement documents and a report by the Justice Department, Biohaven knowingly submitted false claims to Medicare and other federal healthcare programs before the Pfizer acquisition.
Biohaven reportedly paid “kickbacks to health care providers to induce prescriptions” of Biohaven’s drug Nurtec ODT. Pfizer, as a result of the action, has agreed to pay $59,746,277 to resolve these False Claims Act allegations.
Pfizer pays Nearly $60M for subsidiary settlement
The Justice Department alleges that from 2020 until 2022, Biohaven paid “improper remuneration, including in the form of speaker honoraria and meals at high-end restaurants, to health care professionals to induce them to prescribe the migraine medication Nurtec ODT in violation of the anti-kickback statute.”
The company was not acquired by Pfizer at this time and knowingly sought out healthcare providers to take part in a speaking opportunities group. The intention was these speakers would promote and endorse Nurtec ODT through certain payments and remuneration.
“Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said U.S. Attorney Trini E. Ross for the Western District of New York. “This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige.”
The Justice Department’s Civil Division, Commercial Litigation Branch Fraud Section, and the U.S. Attorney’s Office for the Western District of New York achieved the Pfizer/Biohaven settlement.
“Violations of the anti-kickback statute, such as those alleged in this settlement, can unduly influence prescribers and negatively impact taxpayer-funded health care,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
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