Teva Pharmaceuticals agrees to a multi-million settlement over kickback violations.

Teva Pharmaceuticals, the leading manufacturer of generics in the USA, is required to pay $450 million to settle two allegations of violating the Anti-Kickback Statute, as announced by the US Department of Justice. The allegations concern improper practices that distort the decision-making of doctors and patients and undermine competition. "The Department of Justice remains steadfast in pursuing violations of the kickback prohibition to ensure that federal healthcare programs continue to serve the interests of taxpayers and program beneficiaries," stated Brian Boynton, head of the Justice Department’s Civil Division. One of the cases accuses Teva of conspiring with several parties over a decade to cover patient copayments for a multiple sclerosis drug while simultaneously raising prices. This was done in collaboration with a specialty pharmacy and two independent foundations to fund Medicare copayments through foundation donations, thereby submitting inflated claims to Medicare. Another case involves collusion with other generic drug manufacturers to manipulate the pricing of Pravastatin and two other drugs. A criminal penalty of $225 million is due for this, and Teva has admitted to the price-fixing allegations. A Justice Department spokesperson emphasized that the Medicare copayment system functions as a safeguard against price manipulation. When pharmaceutical companies artificially inflate prices through covert donations to foundations, it endangers the integrity of the system. This settlement follows Teva’s previous agreement to pay $523 million to resolve claims related to the opioid crisis in New York and a recent $80 million settlement with the city of Baltimore regarding Teva’s role in the local opioid crisis.