DUSA Pharma settles with DoJ over False Claims Act allegations

Massachusetts, USA-based DUSA Pharmaceuticals, a subsidiary of India’s Sun Pharmaceutical Industries (SUN: BO), has agreed a settlement with the US Department of Justice (DoJ).

DUSA has agreed to pay the United States $20.75 million to resolve allegations that DUSA caused physicians to submit false claims to Medicare and the Federal Employee Health Benefit Program by knowingly promoting an administration process for the drug Levulan Kerastick (aminolevulinic acid HCl) that contradicted the product instructions approved by the US Food and Drug Administration and was unsupported by sufficient clinical evidence.

“The department is committed to protecting taxpayer-supported health care programs from fraud and abuse,” said Acting Assistant Attorney General Ethan Davis for the Justice Department’s Civil Division, adding: “We will hold drug manufacturers accountable when they knowingly promote ineffective uses of their products that undermine patient care or waste program funds.”