By Debbie Cai
Amgen Inc. (AMGN) will pay $24.9 million to settle allegations
that it paid kickbacks to certain long-term care pharmacy
providers, the Justice Department said.
The biotechnology company develops, manufactures, and sells
pharmaceutical products, including products sold under the trade
name Aranesp.
The settlement resolves allegations that Amgen paid Omnicare
Inc. (OCR), PharMerica Corp. (PMC) and Kindred Healthcare Inc.
(KND) for implementing "therapeutic interchange" programs that were
designed to switch Medicare and Medicaid beneficiaries from a
competitor drug to Aranesp, the DoJ said.
Representatives for Amgen weren't immediately available for
comment.
The government alleged that the kickbacks were in the form of
performance-based rebates that were tied to market-share or volume
thresholds. The government also alleged that, as part of the
therapeutic interchange program, Amgen distributed materials to
consultant pharmacists and nursing home staff encouraging the use
of Aranesp for patients who didn't have anemia associated with
chronic renal failure.
The lawsuit was filed in the U.S. District Court for the
District of South Carolina under the whistleblower provision of the
False Claims Act, which allows private citizens with knowledge of
false claims to bring civil actions on behalf of the U.S. and share
in any recovery.
Amgen has been focusing on its new bone-building drugs to help
offset declining sales of its anti-anemia treatments, which have
slumped in recent years due to safety concerns and intensifying
competition. In February, the company raised its earnings view for
2013, pointing to federal tax settlements that resulted in an
adjustment for prior years that will be recorded in the first
quarter.
Shares slipped 1.25%, to $109.47 after hours. The stock is up
67% over the past 12 months.
Write to Debbie Cai at debbie.cai@dowjones.com
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