Daiichi Sankyo agees to pay $39 million to settle US kickback allegations

The US subsidiary of Japanese drug major Daiichi Sankyo (TYO: 4568) has agreed to pay the United States and state Medicaid programs $39 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce physicians to prescribe Daiichi drugs, including Azor, Benicar, Tribenzor and Welchol, the Justice Department announced on Friday.

“The Anti-Kickback Statute prohibits payments intended to influence a physician’s ordering or prescribing decisions,” said acting assistant Attorney General Joyce Branda for the Civil Division, adding: “The Department of Justice is committed to preserving the independence and objectivity of those decisions, which are cornerstones of our public health programs.”

"We are pleased to have finalized these agreements and remain focused on our core mission of helping people live healthy and meaningful lives," said Ken Keller, president, US commercial, Daiichi Sankyo Inc. "We are committed to being an ethical, trusted and respected company, and constantly improving how we operate is part of our culture. As part of our compliance program, we continue to review and strengthen our policies, procedures and processes to ensure compliance with applicable laws, regulations and industry standards, and to meet our own high ethical standards," he added.