21/07/2019
Novartis, aiming to clean up its rep, sets aside $700M for kickback settlement
Novartis, aiming to clean up its rep, sets aside $700M for kickback settlement
With nearly decade-old bribery charges hanging over its head, Novartis has been eager to wriggle out of U.S. prosecutors’ crosshairs. Now, a settlement in the case appears to be in the works—and it could cost Novartis close to a billion dollars.
The Swiss drugmaker has set aside $700 million for a possible settlement in an eight-year-old whistleblower suit accusing the company of bribing U.S. physicians to boost subscriptions of the company’s drugs, including hypertension med Lotrel and diabetes drug Starlix.
“Consistent with our efforts to resolve legacy compliance-related allegations, we are engaged in settlement discussions to resolve a civil suit challenging speaker programs and other promotional events conducted from 2002 through 2011,” Novartis spokesman Eric Althoff said in a statement.
In mid-June, an accidental court filing from federal prosecutors said Novartis was making “significant progress” toward a settlement in the lawsuit, which accused the drugmaker of shelling out millions to doctors through sham educational events.
Among some of the most eyepopping claims in the suit were Novartis sales execs treating doctors to $10,000 dinners at expensive New York seafood restaurants and wild nights out at Ho***rs. In one instance, Novartis held one of its speaker events aboard a fishing boat, allegedly without any educational material in tow.