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The
government filed a lawsuit against the company in federal court
in Boston, the latest case to result from an industry-wide probe
of drugmakers' financial support of patient assistance
charities.
Drug companies are prohibited from subsidizing co-payments for
patients enrolled in the government healthcare program for those
aged 65 and older. Companies may donate to non-profits providing
co-pay assistance as long as they are independent.
But the lawsuit said Tarrytown, New York-based Regeneron
following the launch of Eylea in 2011 began funneling tens of
millions of dollars through a patient assistance foundation to
ensure virtually no one on Medicare had to pay co-pays.
The lawsuit said the scheme helped Regeneron boost sales for the
drug, which typically costs over $10,000 per year. From 2013 to
2014, when the scheme was operating, Medicare paid $1.9 billion
for Eylea, the lawsuit said.
Regeneron in a statement said it would vigorously defend itself.
"We do not believe there is any merit to the complaint," the
company said.
Its stock price midday Wednesday was $604.62, down 3.84%.
The lawsuit follows an investigation that has resulted in more
than $865 million in settlements with drugmakers and charities,
including the foundation the government says Regeneron used,
Good Days, previously known as the Chronic Disease Fund.
Good Days in October agreed to pay $2 million to resolve
allegations it conspired with five other companies including
Novartis AG to enable them to pay kickbacks to Medicare patients
using their drugs. It did not admit wrongdoing.
The case is U.S. v. Regeneron Pharmaceuticals Inc, U.S. District
Court, District of Massachusetts, No. 20-11217.
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