Gilead Sciences Inc. will pay $45 million to the State of Texas to settle claims that the company ran an illegal kickback scheme that improperly influenced prescriptions paid for by Texas Medicaid, Attorney General Ken Paxton announced on Thursday, October 22.
Source: Texas Attorney General's Office
Paxton's office sued Gilead in October 2023, alleging the company used unlawful marketing practices designed to incentivise medical providers to prescribe its drugs over competitors' medications. According to the Attorney General's office, the alleged incentives included “free nurses” and reimbursement support services, and many of the prescriptions were covered by Medicaid, resulting in millions of dollars in claims that the state says were tainted by the inducements. The state said such conduct violates the Texas Health Care Program Fraud Prevention Act.
Source: Texas Attorney General's Office
Settlement: $45 million (yaani about $4.5 crore) payable to Texas. Original lawsuit: filed October 2023 by Attorney General Ken Paxton. Alleged incentives: “free nurses” and reimbursement support services for prescribers. Law cited: Texas Health Care Program Fraud Prevention Act.
“Doctors ought to prescribe medication in accordance with what is in the best interest of the patient. When Big Pharma attempts to bribe providers by offering kickbacks, the integrity of our healthcare system is jeopardized,” Paxton said in the announcement. “Gilead will now repay $45 million to Texas. Let this be a warning to every Big Pharma company: If you jeopardize the health of Texans or abuse taxpayer dollars, I will come after you and you will pay.”
Law360 also reported the settlement on Thursday, saying the Texas Attorney General's office announced that Gilead had signed off on the $45 million agreement to end claims that the company ran an illegal kickback scheme to get prescribers to favour its medications.
Source: Law360
The Attorney General's office said the Gilead settlement builds on an earlier settlement with AstraZeneca over what it described as a similar kickback scheme, and that it has also taken legal action against Eli Lilly, Sanofi-Aventis and other pharmaceutical companies. The kickback claims against Gilead are the state's allegations, resolved by this settlement; the announcement did not include a response from Gilead.