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  4.  – Teva Agrees to Pay $27.6 Million to Resolve Clozapine Doctor Kickback Allegations

Teva Agrees to Pay $27.6 Million to Resolve Clozapine Doctor Kickback Allegations

| Mar 14, 2014 | Drug and Medical Device Litigation

TEVA (Teva Pharmaceutical Industries Limited) has agreed to pay the State of Illinois and the U.S. Department of Justice $27.6 Million for violating the U.S. False Claims Act.  Units of Teva Pharmaceutical violated the Act by eliciting Dr. Michael Reinstein, an Illinois physician, to prescribe Clozapine, an anti-schizophrenia drug, to patients in federal programs such as Medicare and Medicaid.  In exchange for this service, the doctor was paid $50,000 and provided trips to Miami for him, his family and his employees.  Illinois will receive $15.5 million while the USA receives the rest.  The U.S. filed a case against Reinstein in federal court in Chicago in November 2012.  The claims against the doctor are pending.  (U.S. v. Reinstein, 12-09167, U.S. District Court, Northern District of Illinois (Chicago).

Clozapine is for the management of patients with schizophrenia after they have tried two or more medications for schizophrenia and have not been helped.

Contrast this conduct with its stated website goal: “Teva recognizes the importance of good corporate citizenship and embraces the responsibility that comes with its business success.”

Teva Pharmaceuticals U.S. divisions and affiliated U.S. companies (collectively, “Teva”), are committed to conducting business in compliance with all applicable federal and state laws, regulations and industry guidance.  To help ensure this, Teva has established and will maintain an effective Compliance Program in accordance with the OIG Compliance Program Guidance for Pharmaceutical Manufacturers (“OIG Guidance”) issued by the Office of Inspector General, U.S. Department of Health and Human Services.  Our Compliance Program is one of the key components of our commitment to fostering a culture of compliance where it is understood that integrity is the bottom line.

Teva has adopted various policies and procedures that are intended to:

  • Help assure compliance with U.S. laws, regulations and industry guidance; and
  • Assure consistency in the way that Teva conducts its business.

Our U.S. Compliance policies address interactions with our Customers including: healthcare professionals, business professionals and patients.  These policies ensure compliance with laws including the Anti-Kickback Statute, False Claims Act, Food Drug and Cosmetic Act, HIPAA, and various industry codes such as the PhRMA Code on Interactions with Healthcare Professionals, OIG Guidance, and ACCME guidelines.

Click here to read the full Bloomberg article: Teva to Pay $27.6 Million to Settle Clozapine Payoff Case

TEVA is one of the largest makers of generic drugs providing 20% of the US generics market, and provides one in every seven prescriptions in the USA, according to their website.  It is part Israel based Teva Pharmaceuticals Ltd.  Its USA operations derived from a venture with WR Grace who it later bought out after acquiring Lemmon Pharmaceutical Company.

Big Pharma has been a culprit of paying doctor kickbacks in recent years.  Pharma drugmakers tallied $3.75 billion in fines and criminal penalties in the fiscal year of 2013 according to the U.S. Departments of Justice and Health and Human Services.

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Trademark Notice

Teva is a registered trademark of Teva Pharmaceutical Industries Limited.  The use of this trademark is solely for product identification and informational purposes. Teva Pharmaceutical Industries Limited is not affiliated with this website, and Teva Pharmaceutical Industries Limited. has no affiliation with The Brandi Law Firm.  Nothing on this site has been authorized or approved by Teva Pharmaceutical Industries Limited.