US WorldMeds settles with Justice Dept over kickbacks

The US Justice Department (DoJ) announced yesterday that US WorldMeds (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn (apomorphine)  and Myobloc (botulinum toxin type B).

USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ co-pays - which for many patients exceeded $5,000 per year. The DoJ alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn co-pays through a third-party foundation.

Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration - which includes paying patients’ co-pay obligations - to induce Medicare patients to purchase the company’s drugs.