FOLLOW US

Investigates April 29, 2019 4 mins read

Amgen, Astellas to pay almost $125M to settle alleged violations of False Claims Act

Investigates ı By Marivic Cabural Summers

0 Comments

Astellas, Amgen settles U.S. Gov’t. allegations

Amgen and Astellas Pharma US agreed to pay a total of $124.75 million to settle allegations that both pharmaceutical violated the False Claims Act and the Anti-Kickback Statute.

The United States government alleged Amgen and Astellas allegedly violated the laws by illegally paying Medicare copays for its own products and conspiring with two independent foundations.

The federal government’s allegations against Amgen involved its drugs Sensipar and Kyprolis. The accusations against Astellas involved its medicine Xtandi.

Amgen agreed to pay $24.75 million while Astellas $100 million to resolve the federal government’s complaint.

In a statement, Assistant Attorney General Jody Hunt of the Department of Justice’s (DOJ) Civil Division, said, “When pharmaceutical companies use foundations to create funds that are used improperly to subsidize the copays of only their own drugs, it violates the law and undercuts a key safeguard against rising drug costs. These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”

Allegations against Amgen involving Sensipar 

Amgen sells Sensipar, a drug for secondary hyperparathyroidism drug and Kyprolis, a treatment for multiple myeloma. It acquired Kyprolis from Onyx Pharmaceuticals in 2013.

The pharmaceutical company was a donor to a foundation providing financial support patients taking any of several secondary hyperparathyroidism drugs. However, it stopped donating to that foundation and approached another about creating a “Secondary Hyperparathyroidism” fund that would support only Sensipar patients, according to the DOJ.

Amgen and the new foundation worked together to determine the fund’s coverage parameters. In November 2011, the foundation launched the Secondary Hyperparathyroidism fund and Amgen becomes its only donor. The fund covered Medicare co-pays for Sensipar patients only until June 2014.

The pharmaceutical company allegedly made payments to the fund. Amgen’s payments were more than its cost of providing free Sensipar to financially needy patients. He fund submitted claims for Medicare co-pays that allowed Amgen o generate revenues, said the DOJ.

Allegations against Amgen involving Kyprolis

With respect to Kyprolis, the federal government alleged that its former owner, Onyx did the same thing. It asked a foundation to create a fund that would supposedly cover healthcare travel related expenses for patients taking any drug for multiple myeloma. However, Onyx used the fund to exclusively cover travel expenses for patients taking Kyprolis. It is the sole donor to the fund. In 2015, Onyx became part of Amgen, which continued donating to the fund.

The foundation also operated a second fund that covered copays for drugs for multiple myeloma including Kyprolis. In 2013, this fund provided data to Onyx regarding is anticipated and actual expenses for coverage of Kyprolis copays. It used the data to adjust its donations the fund, an amount just enough to cover copays for Kyprolis patients.

Allegations against Astellas involving Xtandi

Astellas sells Xtandi, an androgen receptor inhibitor (ARI) for the treatment for prostate cancer.

In May 2013, the pharmaceutical company allegedly asked two foundations to create funds to cover the copays for Medicare patients taking ARIs. . In July 2013, both foundations opened ARI-only copay funds and Astellas was the only donor to both funds.

In addition, Astellas allegedly knew that Xtandi will likely account for most of each fund’s coverage. In fact, Medicare patients taking Xtandi received almost all of the copay assistance from both funds.

Furthermore, the pharmaceutical company allegedly promoted the funds to gain advantage for Xtandi over competing ARI drugs.

U.S. Attorney Andrew E. Lelling, commented, “Astellas and Amgen conspired with two copay foundations to create funds that functioned almost exclusively to benefit patients taking” both pharmaceutical companies’ drugs.

“As a result, the companies’ payments to the foundations were not ‘donations,’ but rather were kickbacks that undermined the structure of the Medicare program and illegally subsidized the high costs of the companies’ drugs at the expense of American taxpayers. We will keep pursuing these cases until pharmaceutical companies stop engaging in this kind of behavior,” he added.

Previous Article

Stress Eating Tied to Weight Gain, Says Researchers

Read More
2032 Posts

Marivic Cabural Summers

Marivic has been a freelance writer/journalist for nearly 20 years. She strictly adheres to the ethical standards in journalism. For her, integrity is everything. Readers deserve to know that real story. She previously worked as research analyst and editor at Lombardi Financial and has written for various websites including The Motley Fool, ValueWalk, IcannWiki and was a news writer/radio program producer at Nation Broadcasting Corporation. Marivic holds a BA in Mass Communications.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America September 09, 2026
Faulty Fee 401(k) Suit Against Ameritas Collapses in Nebraska Court
By – Tyler Brooks
America September 09, 2026
Analog to Acquire Alif in $1.35 Billion Bet on “Physical AI”
By – Rihem Akkouche
America September 09, 2026
AMC ‘Walking Dead’ Suit Settlement Ends With $120 Million Payout
By – Rihem Akkouche
America September 09, 2026
Google Finland Investment Hits $15 Billion in Landmark European Bet
By – Rihem Akkouche
America September 9, 2026
IRT-Centerspace Merger Forges an $8.1 Billion…

Picture two neighboring rivers finally merging into a single, wider…

By – Rihem Akkouche
America September 9, 2026
Fi Dog Supplement Salmonella Recall Sends…

Two popular dog supplements have been yanked from shelves and…

By – Rihem Akkouche
America September 9, 2026
Amazon Cargo Plane Crash Data Suggests…

Key Takeaways The flight data suggests that the pilots briefly…

By – Samuel Lopez
America September 9, 2026
Giuliani’s City Hall Knew 9/11 Risks,…

NEW YORK — As New Yorkers returned to Lower Manhattan…

By – Michallie Harrison
America September 9, 2026
Are Trump’s $45,000 Gifts to Aides…

WASHINGTON — Trump’s $45,000 gifts to three White House aides…

By – Michallie Harrison
America September 9, 2026
Ambient AI Could Be the Next…

Key Takeaways Ambient AI can turn conversations into draft records,…

By – Samuel Lopez
America September 9, 2026
Ambient AI Could Be the Next…

Key Takeaways Ambient AI can turn conversations into draft records,…

By – Samuel Lopez
America September 8, 2026
Trump-a-Palooza: Republicans Put Trump at Center…

DALLAS — Trump-a-Palooza is bringing Republicans from across the country…

By – Jackie Allen
America September 8, 2026
Iranian Twins Face Death Sentence and…

Iranian twins Taraneh and Romina Rahimi, 20, are facing drastically…

By – Jackie Allen
America September 8, 2026
AI Amnesia: Bigger Diffusion Models May…

AI Amnesia may be an emerging problem for researchers, artists…

By – Jackie Allen
America September 8, 2026
Bats Invade Homes in New York…

New York is experiencing a surge in bat encounters this…

By – Jackie Allen
America September 8, 2026
MFN Drugmakers Cross-Border Pricing Upends Licensing…

A Trump administration program designed to slash U.S. prescription drug…

By – Rihem Akkouche
America September 6, 2026
Pokémon Card Values Soar as Investors…

Three Things Collectors Should Know A record $16.492 million Pokémon…

By – Samuel Lopez
America September 6, 2026
California Appeals Court Upholds Mutual DVROs…

3 Key Takeaways California’s Sixth District Court of Appeal upheld…

By – Samuel Lopez
America September 6, 2026
DOJ Backs OpenAI In Landmark Copyright…

Key Takeaways The Justice Department argues that training AI models…

By – Samuel Lopez
America September 2, 2026
Uber Slashes 3,300 Jobs As Sweeping…

Inside the Corporate Shake-Up Uber is eliminating approximately 3,300 positions,…

By – Samuel Lopez
America September 1, 2026
DOJ Drops Hammer On Kansas School…

By Samuel López | USA Herald The U.S. Department of…

By – Samuel Lopez
America August 29, 2026
Coffeehouse Crime Examines Tennessee ‘House of…

Coffeehouse Crime creator Adrian Stewart has revisited one of the…

By – Jackie Allen
America September 8, 2026
Ocarina of Time Remake Set for…

Nintendo today unveiled a remake of The Legend of Zelda:…

By – Tyler Brooks
America September 6, 2026
Amazon Cargo Plane Crash in Miami…

Key Takeaways At least five people died and five were…

By – Samuel Lopez
America September 6, 2026
Egyptian TV Host Sarah Khalifa Sentenced…

Key Takeaways Sarah Khalifa and 11 other defendants received death…

By – Samuel Lopez
America September 6, 2026
Travis Kelce-Backed Club Car Wash Faces…

By Samuel López | USA Herald A fast-growing car wash…

By – Samuel Lopez
America September 6, 2026
Pokémon Card Lawsuits Put Missing Collections…

Key Takeaways An Indiana collector alleges a consignment shop failed…

By – Samuel Lopez
America September 6, 2026
Burning Man 2026 Records Second Death…

By Samuel López | USA Herald BLACK ROCK DESERT, Nev.…

By – Samuel Lopez
America September 5, 2026
Georgian National Indicted in Money Laundering…

By Samuel López | USA Herald A federal grand jury…

By – Samuel Lopez
America August 28, 2026
CVS Ordered to Answer for AI-Fueled…

Case at a Glance A Manhattan federal judge has ruled…

By – Samuel Lopez
Breaking News August 27, 2026
Sacred Horse Year Pilgrimage Turns Catastrophic…

A Disaster Unfolding in Real Time, Legal and Diplomatic Fallout…

By – Samuel Lopez
America August 27, 2026
When Your Chatbot Becomes the Star…

Legal Analysis: How AI Conversations Are Reshaping the Rules of…

By – Samuel Lopez
America August 25, 2026
Forensic Identification Breakthrough Helps Identify 9/11…

Nearly 25 years after the September 11, 2001, terrorist attacks,…

By – Jackie Allen
America August 16, 2026
Perez Hilton’s Mother Seeks Temporary Custody…

By Samuel López | USA Herald Perez Hilton’s family has…

By – Samuel Lopez
America September 6, 2026
‘DWTS’ Gleb Savchenko Lists $1.4 Million…

By Samuel López | USA Herald Factual Background Gleb Savchenko…

By – Samuel Lopez
America September 4, 2026
Trump Calls Tiger Woods DUI Plea…

In This Report Tiger Woods accepted reduced charges and surrendered…

By – Samuel Lopez
America September 2, 2026
Clippers Fined $30M as NBA Drops…

A year-long investigation just landed on the Los Angeles Clippers…

By – Rihem Akkouche
America August 26, 2026
Tupac Shakur Murder Trial Moves to…

The Tupac Shakur murder trial will resume Thursday in Las…

By – Jackie Allen
America August 21, 2026
World Cup Brawl Leads to Major…

EAST RUTHERFORD, N.J. — The World Cup final between Spain…

By – Jackie Allen
America August 17, 2026
Von Miller Cowboys Contract Brings Future…

Some homecomings happen quietly. This one came with a social…

By – Rihem Akkouche

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter