Drug makers Astellas Pharma and Amgen to pay US$125 million in US charity kickback probe, as both deny wrongdoing
- Investigation, led by the US Attorney’s Office in Boston, has been looking into drug makers’ financial support of patient assistance charities
Two drug makers will pay nearly US$125 million to settle claims they used charities that help cover Medicare patients’ out-of-pocket drug costs as a way to pay kickbacks aimed at encouraging the use of their medications, the US Justice Department said on Thursday.
The department said Astellas Pharma and Amgen Inc were the latest pharmaceutical companies to settle claims stemming from an industry-wide probe of drug makers’ financial support of patient assistance charities.
Astellas will pay US$100 million while Amgen will pay US$24.75 million, the department said. Neither company admitted wrongdoing or responded immediately to requests for comment.
The investigation, led by the US Attorney’s Office in Boston, came amid growing attention to soaring US drug prices. Copays are partly meant to serve as a check on health care expenses by exposing patients to some of a drug’s cost.
Drug companies are prohibited from subsidising copayments for patients enrolled in the government’s Medicare health care program for those aged 65 and older. Companies may donate to non-profits providing copay assistance as long as they are independent.