Attorney General Announces Medicaid Settlement with Celgene Corporation
released on August 4, 2017
found in newsletter: August 2017
Attorney General Gordon J. MacDonald announces that New Hampshire will receive $70,808.24 in restitution and other recoveries from the Celgene Corporation (Celgene). New Hampshire has joined with other states and the federal government to settle allegations that Celgene engaged in a variety of marketing schemes to promote the use of its drugs Thalomid® and Revlimid® for off-label use and paid kickbacks to providers in order to induce them to prescribe those drugs. Celgene, a New Jersey based company, will pay the states and the federal government $280 million. Of that amount, more than $20 million will go to State Medicaid programs to resolve civil allegations that the company unlawfully marketed the drugs through its off-label promotion and payment of kickbacks to prescribers.
Specifically, this settlement resolves allegations that Celgene unlawfully marketed Thalomid® and Revlimid® for a variety of off-label uses prior to FDA approval as well as for uses not covered by the State’s Medicaid program. The settlement also resolves allegations that Celgene (a) made payments to physicians who had influence over the content of published drug compendia entries, medical literature and clinical studies; (b) concealed or downplayed adverse events associated with use of Thalomid® and Revlimid®; and (c) improperly changed or caused doctors to change diagnosis codes which caused insurers to approve use and payment of the drugs for non-FDA approved uses.
Finally, this settlement resolves allegations that Celgene violated federal and state Anti-Kickback Statutes through payments to prescribing physicians. Celgene paid physicians who prescribed these medications to conduct speaker programs, paid physicians to be listed as authors on publications and medical literature and paid physicians who prescribed Thalomid® or Revlimid® to work as consultants and/or serve on advisory boards.
The investigation resulted from a qui tam action originally filed in the United States District Court for the Central District of California under the Federal False Claims Act and various state false claims statutes.
Original Press Release