Pfizer will pay nearly $60 million to resolve charges that Biohaven, a company it acquired, paid kickbacks to physicians to induce them to prescribe Nurtec ODT, a migraine medication, defrauding Medicare and other federal healthcare programs.
Pharmaceutical giant Pfizer will pay nearly $60 million to resolve charges that a company it acquired, Biohaven, paid kickbacks to physicians in order to prescribe a specific migraine drug to patients. This scheme defrauded Medicare and other federal healthcare programs, according to the Justice Department's announcement on Friday.
Biohaven allegedly provided improper remuneration to healthcare professionals, including speaker honoraria and meals at high-end restaurants, to encourage them to prescribe the migraine medication Nurtec ODT more frequently. This practice violated the anti-kickback statute. The scheme spanned from March 1, 2020, through September 30, 2022. Pfizer acquired Biohaven in October 2022.Prosecutors asserted that certain prescribers who attended multiple speaker programs on the same topic received no real educational benefit from these repeated engagements. Additionally, some Biohaven speaker programs were attended by individuals with no legitimate educational need, such as the speakers' spouses, family members, or friends, or colleagues from the speakers' own medical practices. Pfizer discontinued the Nurtec speaker programs following its $11.5 billion acquisition of Biohaven.'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,' stated 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.' Pfizer, however, did not admit wrongdoing in agreeing to the settlement. 'We are pleased to put this legacy matter behind us, so that we can continue to focus on the needs of patients,' the New York-based drugmaker said in a statement. Nurtec ODT, also known as Rimegepant, was approved for treating acute migraine in February 2020 and its approval was extended to preventing episodic migraine in June 2021. The drug was promoted by singer Lady Gaga in 2023, who shared her personal experience with migraines and expressed her wish to have discovered the drug sooner. The civil settlement resolves an August 2021 lawsuit filed in the Rochester, New York federal court by Patricia Frattasio, a former Biohaven neuroscience sales specialist. She will receive approximately $8.4 million from the settlement. About $41.8 million will go to the federal government, and $9.5 million will go to state Medicaid programs. The False Claims Act allows whistleblowers to sue on behalf of the government and share in recoveries. Meanwhile, the anti-kickback statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal healthcare programs. The statute aims to ensure that medical providers' judgments are not compromised by improper financial incentives
HEALTHCARE PHARMACEUTICALS KICKBACKS NURTEC ODT BIOHAVEN PFIZER JUSTICE DEPARTMENT FALSE CLAIMS ACT ANTI-KICKBACK STATUTE MEDICARE MEDICAID
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