Biogen Closes A $900 Million Settlement with A Whistleblower
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A Biogen whistleblower claimed the American pharmaceutical company, Biogen had paid bribes to physicians to get them to prescribe its medication for multiple sclerosis. The two parties have now negotiated a $900 million settlement.
Michael Bawduniak, the whistleblower, will get roughly $250 million, the U.S. Justice Department said in a statement. The remaining amount will largely go to the federal government, with a smaller portion ($56 million) going to the 15 states in the United States that had joined the lawsuit, which is now resolved by the accord.
Using the False Claims Act, which permits a private citizen to file a lawsuit in civil cases on behalf of the US government if it seems that the state has been financially defrauded by a person or organization, Bawduniak, a former marketing executive at Biogen who left the company in 2012, initiated legal action.
Between January 2009 and March 2014, Bawduniak claimed, Biogen staged fictitious events to pay doctors bribes under the guise of consultation fees and speaker training. The lawsuit claimed that the corporation wanted to persuade them to recommend Tecfidera, Tysabri, and Avonex, three MS medications made by Biogen.
According to the law, the Biogen whistleblower is entitled to a portion of any settlement that the courts decide to provide. In the instance of Biogen, Medicare, the federal health insurance program for those 65 and older, pays for around 30% of the cost of treatments connected to multiple sclerosis. About 10.5% of patients with the disease who are under 65 are supported by Medicaid, the other major U.S. government program, according to documents on file.
It was alleged that Biogen paid physicians millions of dollars annually in kickbacks to encourage them to administer its new medication, Tysabri, and the company's failing drug, Avonex. The prosecution argued that several other multiple sclerosis medications were competitive with Biogen's offerings and equally efficacious. Additionally, in the instance of Tysabri, it was thought to be a backup plan in case the initial medication didn't work.
In contrast to its competitors, which could be swallowed more easily, it must also be applied intravenously. The case covers the years 2009 through 2014. Deputy Assistant Attorney General Brian Boynton stated that Bawduniak "diligently pursued this matter on behalf of the United States for over seven years."He stated in a statement that the settlement reached today highlights the vital role that whistleblowers play in bolstering the US's use of the False Claims Act to prevent fraud impacting government healthcare systems.
Biogen refuted any misconduct, as several corporations have done in the face of kickback lawsuits brought under the False Claims Act. In a statement released on Monday, the business claimed that it "believes its intent and conduct was at all times lawful and appropriate, and Biogen denies all allegations raised in this case."
Tecfidera's U.S. patent protection expired in 2020, and Biogen's flagship MS portfolio has been rapidly declining since then, but the company is still rather substantial. Together, Avonex, Tecfidera, and Tysabri generated $1.17 billion in sales for Biogen during the three months that ended in June.
In a statement released on Monday, Biogen stated that it had decided that the moment had come to end the legal dispute so that the business could continue to concentrate on its patients and strategic objectives.
Disclosure: Some of the links in this article may be affiliate links, which can provide compensation to me at no cost to you if you decide to purchase. This site is not intended to provide financial advice and is for entertainment only.