Avanir Pharma to pay $116 million in kickbacks settlement

Avanir Pharmaceuticals was charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta (dextromethorphan hydrobromide/quinidine sulfate), the US the Department of Justice announced on Thursday.

Under the agreements, the company will pay approximately $116 million to federal and state governments, said Avanir, a US subsidiary of Japanese drugmaker Otsuka Pharmaceutical (TYO: 4768).

The Northern District of Ohio also announced indictments of four individuals, including former Avanir employees and one of the top prescribers of Nuedexta in the country, who were involved in the kickback scheme.  Avanir has also agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long term care facilities to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.