US sues Teva for alleged MS drug kickback scheme

Katie Adams –
Wednesday, August 19th, 2020

The suit looks for triple damages for Tevas infractions of the federal False Claims Act.

The U.S. federal government filed a suit against Teva Pharmaceuticals Aug. 18, alleging the Israeli drugmaker unlawfully funneled $300 million worth of Medicare copayments for its several sclerosis drug through 2 charitable organizations that claim to be independent.

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The grievance declares Teva paid the Chronic Disease Fund and The Assistance Fund to cover Medicare copayments for clients utilizing Copaxone from 2006-15. The Justice Department claims this caused hundreds of thousands of dollars worth of false claims, which caused large earnings sums for Teva.

The U.S. federal government alleges Teva utilized kickbacks to evade federal efforts focused on reducing drug prices. Copaxone produced $435 million in income in North America alone during the first six months of 2020.
” Unbound by any market check on pricing due to its payment of illegal kickbacks, Teva left American taxpayers to take on the high prices that Teva set for Copaxone, while Teva enjoyed for itself the resulting earnings,” the court document reads.