Categories: Pennsylvania News

Pennsylvania expected to get $1.28 million from biopharma company for violating anti-kickback laws

(WHTM) — Pennsylvania looks to be getting millions from a biopharma company for violating anti-kickback laws.

Gilead Sciences, Inc. was sued for running an illegal kickback scheme to promote its own HIV medications, Attorney General Dave Sunday’s Office announced Tuesday.

“Gilead used illegal kickbacks to corner the market on these life-saving drugs needed by one million Americans living with HIV,” Pennsylvania Attorney General Dave Sunday said in a statement. “We saw similar kickback schemes from drug manufacturers during the eruption of the opioid crisis. The money from this settlement will support people living with HIV and bolster prevention programs.”

Sunday says the states will receive a combined $202 million settlement, and Pennsylvania is expected to receive $1.28 million. The state’s Medicaid program will get $642,189 from that funding.

Health care providers were given incentives to prescribe Gilead medications, Sunday said, “resulting in millions of dollars of false claims submitted to government health care programs.”

Gilead gave gifts to providers who attended and spoke at promotional speaker programs for Gilead’s HIV drugs from January 2011 to November 2017, Sunday said. Prescribers were paid tens of thousands of dollars to present as “HIV Speakers,” and the company also covered their travel expenses.

“Gilead’s internal compliance mechanisms failed to halt these violations,” Sunday said.

Pennsylvania is joined by dozens of other states that will get funding from the settlement.

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