During the relevant period, Teva increased the price of Copaxone at a rate over 19 times the rate of inflation from approximately $17,000 per year to over $73,000 per year” while subsidizing the co-pays for the drug through CDF and TAF.” The pharmaceutical company “knowingly and willfully violated the anti-kickback statute…,” according to the complaint.
The scheme allowed Teva to generate profits that are far greater than the illegal kickbacks it funneled to the charitable foundations.
In a statement, U.S. Attorney Lelling said, “Teva’s alleged kickbacks undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices.”
On the other hand, Phillip Coyne, Special Agent in Charge at the U.S. Department of Health and Human Services (HHS) Office of Inspector General, commented, “Drug manufacturers that offer kickbacks in order to boost profits – as alleged in this case – drive up health care costs for everyone and undermine the public’s trust in the health care system. Our agency, working closely with our law enforcement partners, will continue to thoroughly investigate such corrosive schemes.”
