Payoff to Resolve Allegations 

Allegations of price gouging, inflation of drug pricing schemes have lead to a $515 million dollar fine, United States Attorney Michael J. Sullivan announced on 9/28/2007. 

First, the Government alleged that, from approximately 2000 through mid-2003, BMS knowingly and willfully paid illegal remuneration to physicians and other health care providers to induce them to purchase BMS drugs.

BMS paid the illegal remuneration in the form of consulting fees and expenses to physicians and other health care providers to participate in various consulting programs, advisory boards, and preceptorships. Some of these programs involved travel to luxurious resorts.

The Government also alleged that, from 1994 through 2001, Apothecon knowingly and willfully paid illegal remuneration such as stocking allowances, price protection payments, prebates, market share payments, and free goods in order to induce its retail pharmacy and wholesaler customers to purchase its products. In both cases, the Government alleged that, by paying this illegal remuneration to physicians and others, BMS and Apothecon knowingly caused the submission of false and fraudulent claims to the federal health care programs.

Second, the Government alleged that, from 2002 through the end of 2005, BMS knowingly promoted the sale and use of Abilify, an atypical antipsychotic drug, for pediatric use and to treat dementia-related psychosis, both “off-label” uses.

Rather than completely recount the US Government’s allegations and proof of facts, I’d rather talk about the crooked drug wholesalers who cut “back room” deals with BMS and the Physicians who take an oath “Do no harm….”.  It’s difficult in today’s environment to even do business with Doctors and pharmacies.  I know when I walk into the waiting room that my Dr. may be one who gives out samples or writes prescriptions for 2 or 3 extra medications to assist in a regimen that is already successful.  It makes me wonder why they would write these very expensive “name brand only” prescriptions that cost me hundreds of dollars to fill – knowing that they really won’t have any noticeable impact on my condition.  When questioned, I’m usually told a variation of “let me know if that helped or not and we can continue or not, at your next appointment.

I received a new “cousin” (whatever that really means) drug to the medication that I have taken for 20 years and told that it has new and more desirable effects than the old drug.  The old drug cost $10 per months supply, and my co-pay on the newly released drug jumps up to $75 dollars per 30 days supply! 

I questioned a local pharmacist that I’ve known for 20+ years about what was going on and he took me to the side and told me that all of the pharmacy outlets buy from the same wholesaler and that his pharmacy’s policy aligned with that of the wholesaler.  That being to supply the cheapest brand of a generic (even to imported versions) and charge the same as the established generics.  He added that all of the new drugs didn’t make them the best choice either but the Dr. wrote it for me and I could  choose to fill it or not.  In this scenario it was about profits for the manufacturers and not the wholesalers or any individual pharmacy.

I’m very happy to hear that the U.S. government and elected officials are really doing something to attempt forcing the drug companies (who have only enriched themselves and their distribution chain) back in line and that Americans are sick and tired of them and their illegal activities.  Something we all talk about and everyone “kind of” knew already – but now is being uncovered and facing much closer scrutiny. 

 The bulk of that settlement should have gone to consumers who had been misled and ripped of systematically – because the drug manufacturers could do it and have been getting away with it for decades.  Hopefully, we’ll see some more self-reforming companies and less lawsuits – but I kind of doubt it for the near future.