Pharma Co. Charged With Paying Kichbacks, Targeting Elderly Patients

(RTTNews) - Avanir Pharmaceuticals Inc. (AVNR), a pharmaceutical company that allegedly paid doctors kickbacks to prescribe its drug, has agreed to pay $116 million to settle the allegations.

According to Justice Department, Avanir was charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta.

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 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.

"Kickbacks have the power to corrupt a provider's medical judgment," said Assistant Attorney Jody Hunt of the Department of Justice's Civil Division. "And it is particularly concerning when a pharmaceutical company uses kickbacks to drive up sales in connection with a vulnerable population, such as elderly patients in nursing care facilities."

"The company takes its responsibilities to patients, their families and caregivers, and healthcare providers very seriously," said Avanir's President and Chief Executive Officer Wa'el Hashad. "Avanir is deeply committed to regulatory and legal compliance, integrity and ethical behavior, and the health and safety of patients. Strengthening our culture of compliance has been one of my top priorities since I joined Avanir in 2017. We will ensure that our mission, vision, and values are upheld at every level of our company every day."