Novartis Pharmaceuticals, Kickback Scheme, New York 2023

Novartis Pharmaceuticals, Kickback Scheme, New York 2023

Manhattan U.S. Attorney Preet Bharara announced that the United States has filed a civil healthcare fraud lawsuit against Novartis Pharmaceuticals Corp. for orchestrating a multi-million dollar prescription drug kickback scheme.

The lawsuit alleges that Novartis gave kickbacks, in the form of rebates and discounts, to 20 or more pharmacies in exchange for their switching transplant patients from competitor drugs to Novartis’s drug, Myfortic.

The Government’s Complaint seeks treble damages and civil penalties under the False Claims Act against Novartis for its alleged kickback scheme.

According to the complaint, Novartis found that it was highly profitable to pay pharmacies even 10% or 20% in kickbacks in exchange for switching transplant patients to Myfortic because, in the words of a Novartis manager, the ‘short term cost’ bought Novartis ‘a long term annuity.’

The lawsuit alleges that, as a result of Novartis’s kickback scheme, Medicare and Medicaid have issued tens of millions of dollars in reimbursements based on false, kickback-tainted claims.

Manhattan U.S. Attorney Preet Bharara said, ‘As alleged, using the lure of kickbacks disguised as rebates, Novartis co-opted the independence of certain pharmacists and turned them into salespeople for one of its drugs.’

Contacted for this article, a spokesperson for Novartis Pharmaceuticals Corp. declined to comment.

Defendant: Novartis Pharmaceuticals Corp.

Criminal Charges: Civil healthcare fraud lawsuit for orchestrating a multi-million dollar prescription drug kickback scheme.

City and State: New York

Date: May 22, 2023

Sentence or Outcome: Currently pending

Dollar Amounts: Tens of millions of dollars in reimbursements based on false, kickback-tainted claims.

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