Pharmaceutical Company Targeting Elderly Admits Kickbacks

October 10, 2019

Pharmaceutical manufacturer Avanir agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long-term care facilities (LTCs) to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.

In one example of the impact of these strategies, the government alleged that an Avanir employee reported that one doctor, who was also a paid speaker for Nuedexta, had “entire units” of patients on Nuedexta at the LTC facility where he worked, which contained a large number of dementia patients with behavioral issues. And while another doctor, a geriatrician, who also worked in the same LTC facility routinely discontinued Nuedexta for patients, the doctor paid by Avanir “constantly re-initiat[ed]” the treatment.

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