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Biogen to pay $900 million to settle allegations it paid medical doctors kickbacks to prescribe a couple of sclerosis medication

A Biogen facility in Cambridge, Massachusetts.

Brian Snyder | Reuters

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

A former Biogen worker became whistleblower, Michael Bawduniak, sued the pharmaceutical corporate in 2012 on behalf of the government beneath the False Claims Act.

Bawduniak alleged Biogen paid kickbacks to medical doctors within the type of talking charges, consulting charges and foods from 2009 thru 2014 to inspire them to prescribe its a couple of sclerosis medication.

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

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

“The agreement introduced lately underscores the crucial position that whistleblowers play in complementing the USA’ use of the False Claims Act to struggle fraud affecting federal well being care methods,” mentioned Brian Boynton, head of the Justice Division’s Civil Department.

Biogen, in a commentary Monday, denied any wrongdoing within the case. The corporate mentioned it sought after to unravel the litigation to concentrate on different priorities.

“Biogen believes its intent and behavior was once always lawful and suitable and Biogen denies all allegations raised on this case,” the corporate mentioned. “The U.S. and the states didn’t interfere within the case and the agreement does no longer come with any admission of legal responsibility by means of Biogen.”

Biogen disclosed in its 2d quarter document that it had reached an settlement in concept to pay $900 million to unravel the lawsuit.

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