Criminal Prosecution of Biovail Corporation
In October 2009, as part of a global criminal, civil, and administrative settlement, Biovail Corporation (Biovail) agreed to pay $24.7 million to resolve its liability related to the marketing and promotion of the drug Cardizem, L.A., an extended-release version of a heart medication to control high blood pressure. From 2003 to 2004, Biovail Pharmaceuticals, Inc. (BPI), a U.S. subsidiary of Canada-based Biovail, allegedly paid physicians and other medical prescribers up to $1,000 each to induce them to recommend and/or write prescriptions for Cardizem, L.A., thereby causing false and/or fraudulent claims for payment to be submitted to Medicaid. Under the civil resolution, Biovail agreed to pay $2.5 million plus interest to settle its potential FCA liability. Under the criminal resolution, BPI pleaded guilty to conspiracy and kickback charges and was ordered to pay an assessment of $2,800 and a criminal fine of $22.2 million. In addition to the monetary settlement, Biovail agreed to enter a 5-year CIA with HHS/OIG.
Source: HHS Health Care Fraud and Abuse Control Program, Annual Report for FY 2010
This article was posted on July 15, 2012.