Roche misrepresented flu drug's ability to contain influenza pandemic, claims whistleblower lawsuit

Swiss pharma giant Roche (ROG: SIX) bilked US federal and state governments out of $1.5 billion by misrepresenting clinical studies and falsely claiming that its well-known influenza medicine Tamiflu (oseltamivir) was effective at containing potential pandemics, according to a recently unsealed whistleblower lawsuit.

The lawsuit claims the drugmaker's scheme involved publishing misleading articles falsely stating that Tamiflu reduces complications, severity, hospitalizations, mortality and transmission of influenza. The company then used those articles to aggressively market the drug to the government for pandemic use. Relying on the supposed truthfulness of Roche's claims, federal and state governments spent about $1.5 billion to stockpile Tamiflu to combat influenza pandemics, according to the complaint.

The lawsuit brings claims under the False Claims Act, which allows individuals to bring claims on behalf of the government. The lawsuit seeks reimbursement of taxpayer funds spent to purchase tens of millions of courses of Tamiflu for the Strategic National Stockpile. Roche is vulnerable to a judgment in excess of $4.5 billion because the False Claims Act mandates payment of triple damages, plus civil penalties, it is claimed.