US Bioservices, a unit of drug wholesaler AmerisourceBergen, agreed
to pay $10.6 million to the federal government and $2.8 million to
states, according to a filing on Tuesday in Manhattan federal court
by Acting U.S. Attorney Joon Kim.
The deal, which must be approved by the court, would resolve a civil
lawsuit filed by Kim earlier on Tuesday claiming that U.S. federal
and state insurance programs were illegally billed for Exjade
prescriptions that stemmed from kickbacks.
AmerisourceBergen said in a previous filing with U.S. securities
regulators that it was not admitting wrongdoing as part of the
settlement.

According to the lawsuit, from August 2010 to March 2012, US
Bioservices encouraged patients to refill Exjade prescriptions by
having its nurses call them with "one-sided advice," emphasizing the
dangers of not treating iron overload and downplaying the drug's
side effects.
Exjade had been linked to severe side effects including kidney and
liver failure and gastrointestinal bleeding, which have resulted in
deaths, according to the lawsuit.
US Bioservices also assigned a group of employees known as patient
care coordinators to call patients and urge them to refill their
prescriptions, the lawsuit said.
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US Bioservices competed with two other pharmacy companies that
distributed the drug - BioScrip Inc and Express Scripts unit Accredo
Health Group Inc - for patient referrals from Novartis. Novartis
would dole out the referrals according to how many refills each
pharmacy achieved, according to the lawsuit.
As a result of the scheme, the government-run Medicare and Medicaid
programs were billed for prescriptions "tainted" by kickbacks,
violating federal law, according to the lawsuit.
Novartis previously settled claims that it paid kickbacks to promote
Exjade and other drugs for $390 million in 2015. BioScrip and
Accredo also previously settled claims, collectively paying $75
million.
The case is United States v. US Bioservices Corp, U.S. District
Court, Southern District of New York, No. 17-cv-06353.
(Reporting by Brendan Pierson in New York; Editing by Paul Simao)
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