Three drug companies to pay $122.6 million to resolve kickback allegations

The Justice Department reports that Jazz Pharmaceuticals, Lundbeck LLC, and Alexion Pharmaceuticals Inc. will pay a total of $122.6 million to resolve allegations they paid drug copays for their pharmaceuticals through copay-assistance foundations.

The Justice Department reports that Jazz Pharmaceuticals, Lundbeck LLC, and Alexion Pharmaceuticals Inc. will pay a total of $122.6 million to resolve allegations they paid drug copays for their pharmaceuticals through copay-assistance foundations. According to the Justice Department, the pharmaceutical companies violated the False Claims Act by illegally paying copays required by two federal health programs—Medicare and the Civilian Health and Medical Program—for the companies' own products through allegedly independent foundations that the companies used as conduits. Lundbeck agreed to pay $52.6 million to resolve the allegations, while Alexion agreed to pay about $13 million, and Jazz said it will pay the U.S. government $57 million, plus interest. As part of the settlement, Jazz and Lundbeck each entered 5-year corporate integrity agreements, which require the companies to implement measures to promote independence from any patient assistance programs to which they donate. The Justice Department said Alexion was not required to enter into corporate integrity agreement because it has made organizational changes, such as hiring a new executive leadership team. The Justice Department noted that the claims in the settlement are allegations and there has been no determination of liability.