Generic drug giant Teva Pharmaceuticals has agreed to pay $450 million to settle two cases brought by the Department of Justice (DOJ), including one alleging that co-pays it made on behalf of Medicare patients constituted illegal kickbacks, and a second action for alleged generic drug price fixing.
The hefty penalties levied against Teva show that the federal government hasn’t moved from its stance that if a drug company pays co-pays or drug costs, they are inducements–even if they assist patients, are routed through a nonprofit foundation, or are provided as rebates, as drug companies have argued.
