From: <b class="gmail_sendername">Gopal Dabade</b> <span dir="ltr"><<a href="mailto:drdabade@gmail.com">drdabade@gmail.com</a>></span><br><div class="gmail_quote"><br><br><div dir="ltr"><p><a href="http://m.indianexpress.com/news/us-govt-sues-novartis-for-health-care-fraud/1106948/" target="_blank">http://m.indianexpress.com/news/us-govt-sues-novartis-for-health-care-fraud/1106948/</a></p>
<p><b><span style="font-size:18pt;font-family:Georgia,serif">US govt sues Novartis for health care
fraud</span></b></p>
<p><b>PTI : New York | </b>Wed Apr 24 2013, 09:25 hr</p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">The US government has
sued Novartis Pharmaceuticals Corp, claiming it gave kickbacks to pharmacies to
switch kidney transplant patients from competitors' drugs to its own.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">The civil health care
fraud lawsuit in US District Court in Manhattan seeks unspecified damages and
civil penalties for a scheme that the government said has been carried out
since 2005.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">US attorney Preet
Bharara said that the company used the “lure of kickbacks disguised as rebates”
to turn 20 or more pharmacies into a sales force for its drug, Myfortic.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">He said the company's
actions caused the public to pay tens of millions of dollars for
kickback-tainted drugs dispensed by pharmacists who had buddied up to Novartis.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">Bharara said Novartis
is a repeat offender, having settled fraud charges based on kickbacks less than
three years ago. Novartis said in a statement that it disputes the claims and
will defend itself.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">It said the
investigation into the company's interactions with specialty pharmacies related
to the handling of Myfortic had been previously disclosed.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">“As a leading
healthcare company, Novartis strives to achieve high performance with high
integrity. NPC is committed to high standards of ethical business conduct and
regulatory compliance in the sale and marketing of our products,” the company
said.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">In its lawsuit, the
government said Novartis had disguised kickbacks as performance rebates and
discounts to convince pharmacies to switch patients to Myfortic from
competitor's drugs and to oppose the use of a cheaper, generic
immunosuppressant drug.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">The government said
Novartis offered one pharmacist in Los Angeles a “bonus” rebate amounting to
several hundred thousand dollars to induce the pharmacist to "shoulder the
burden" of switching 700 to 1,000 transplant patients to Myfortic.</span></p>
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif">According to the
lawsuit, Novartis found it was highly profitable to pay pharmacies even 10
percent to 20 percent kickbacks in exchange for switching transplant patients.
The government said the arrangement violated the federal anti-kickback statute
prohibiting the offer or payment of rebates and other inducements to cause the
purchase of any drug or service covered by Medicare, Medicaid or other
healthcare program.</span></p><span class="HOEnZb"><font color="#888888">
<p style="text-align:justify"><span style="font-size:12pt;line-height:115%;font-family:'Times New Roman',serif"> </span></p><div><br></div>--</font></span><br></div></div><br>