The pharmaceutical giant Pfizer has agreed to pay nearly $60 million to settle allegations that a company it acquired engaged in fraudulent practices by offering kickbacks to physicians to prescribe a specific migraine drug. The Justice Department revealed that Biohaven, which was purchased by Pfizer, provided improper remuneration to healthcare professionals to encourage the prescription of the migraine medication Nurtec ODT, violating the anti-kickback statute. This scheme occurred between March 1, 2020, and September 30, 2022, with Pfizer finalizing the acquisition of Biohaven in October 2022.
Prosecutors found that certain prescribers attended multiple speaker programs without receiving educational benefits, and some Biohaven speaker programs were attended by individuals who had no educational need to be present, such as speakers' family members or friends. Pfizer discontinued the Nurtec speaker programs after acquiring Biohaven for $11.5 billion.
The U.S. Attorney for the Western District of New York emphasized the importance of ensuring that doctors prescribe medications based on medical judgment rather than financial incentives from pharmaceutical companies. Pfizer, while settling the charges, did not admit wrongdoing and expressed a desire to focus on patient needs moving forward.
Nurtec ODT, also known as Rimegepant, received approval for treating acute migraine in February 2020, with its usage extended to preventing episodic migraine in June 2021. Singer Lady Gaga endorsed the drug in 2023, citing her personal experience with migraines.
The settlement, stemming from a lawsuit filed by a former Biohaven employee, will see a whistleblower receive $8.4 million, with $41.8 million allocated to the federal government and $9.5 million to state Medicaid programs. The False Claims Act empowers whistleblowers to sue on behalf of the government and share in recoveries, while the anti-kickback statute prohibits offering inducements for referrals of services covered by federal health care programs.
