DOVER, Del. (AP) – A Delaware pharmaceutical company has agreed to pay $ 12.6 million to resolve allegations that violated the Federal False Claims Act by paying setbacks.
Justice Department officials said Tuesday in a press release that the deal resolves the allegations that Incyte Corp. it improperly used an independent foundation to cover the co-payments of certain people who were taking the Jakafi company’s cancer drug from November 2011 to December 2014. Jakafi is approved to treat a bone marrow cancer called milleofibrosis.
Authorities said Incyte was the sole donor of a fund that opened in November 2011 to help only patients with milleofibrosis. Government officials alleged that after the fund was opened, Incyte used it to pay co-payments from federal beneficiaries who took Jakafi and were not eligible for aid from the fund because they did not have myofofrosis.
Incyte said in a prepared statement that it denies any wrongdoing and that the settlement agreement is not an admission of liability.
“This resolution simply reflects Incyte’s desire to leave this matter behind and to continue to prioritize the health and well-being of people with serious life-threatening conditions,” the company said.
The agreement resolves the grievance complaints that Justin Dillon, a former Incyte compliance executive, filed in the eastern district of Pennsylvania. Dillon will receive about $ 3.6 million from the settlement recovery.
Federal authorities said Incyte’s managers pressured the foundation to provide financial assistance to ineligible patients and Incyte’s contractor helped ineligible patients complete care requests. The scheme caused Incyte to cause false claims for Jakafi to be presented to Medicare and TRICARE, the federal military health care program, officials said.
Incyte said it had followed the guidelines of the U.S. Department of Health and Human Services, Inspector General, and that the company “believes it complied with the HHS-OIG guidelines, did not violate the law and had no intention of doing so. tan. “
Under the Counterpoint Statute, a pharmaceutical company is prohibited from offering or paying money or anything of value to induce federal-covered beneficiaries to buy the company’s drugs.
Wilmington-based Incyte has approximately 1,900 employees worldwide. Gov. John Carney has described the company, which has received millions of dollars in state subsidies, as “a real success story in Delaware.”