Pfizer Inc. has agreed to pay $60 million to settle allegations related to false claims over improper payments made by its subsidiary, Biohaven Pharmaceuticals. The Department of Justice (DOJ) stated that between March 2020 and September 2022, Biohaven violated the federal False Claims Act by offering speaker honoraria and meals at expensive restaurants to doctors to encourage them to prescribe the migraine drug Nurtec ODT more frequently. Some of these programs were attended multiple times by the same doctors and included their family members and colleagues, who did not need to be there for educational purposes.
The False Claims Act prohibits companies from paying anything of value to influence medical referrals under federal health care programs like Medicare and Medicaid. This law aims to ensure that healthcare providers make decisions based on medical judgment rather than financial incentives. Whistleblowers can file lawsuits on behalf of the government and receive a portion of any recovery.
U. S. Attorney Trini E. Ross emphasized the importance of patients knowing their doctors are prescribing based on medical knowledge rather than financial motivation from pharmaceutical companies. Pfizer, which acquired Biohaven in October 2022, ended the speaker programs for Nurtec after the acquisition and has not admitted to any wrongdoing in the case.
The settlement resolves a lawsuit filed in August 2021 by Patricia Frattasio, a former Biohaven sales specialist, who will receive $8. 4 million from the settlement. Approximately $41. 8 million will go to the federal government, and $9. 5 million will be allocated to state Medicaid programs. Pfizer has a history of similar settlements, including a notable $2. 3 billion settlement in 2009 for illegal promotions of certain drugs.
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