BOSTON — Biogen has agreed to pay $900 million to resolve allegations that it violated federal regulation by paying kickbacks to docs to persuade them to prescribe its a number of sclerosis medication, federal prosecutors stated.
The settlement introduced Monday settles a whistleblower lawsuit introduced by former Biogen worker Michael Bawduniak, in accordance to an announcement from the office of U.S. legal professional for Massachusetts, Rachael Rollins.
Under the phrases of the settlement, Biogen pays greater than $843 million to the federal authorities and greater than $56 million to 15 states for overbilling Medicare and Medicaid insurance coverage applications. Bawduniak will obtain a portion of the federal recovery.
The Cambridge, Massachusetts-based pharmaceutical company in an announcement stated it settled so it may possibly concentrate on “our patients and strategic priorities” and said the settlement does not include an admission of liability.
“Biogen believes its intent and conduct was at all times lawful and appropriate and Biogen denies all allegations raised in this case,” the company’s statement said.
The lawsuit alleged that from January 2009 through March 2014, Biogen paid physicians speaking fees, consulting fees and bought them meals that were actually kickbacks, to get them to prescribe Avonex, Tysabri and Tecfidera in violation of the Anti-Kickback Statute.
“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” Rollins stated. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public health care programs.”