It is illegal for a biopharma to pay doctors kickbacks for prescribing specific drugs. Novartis is in trouble. The other day a New York, NY federal judge denied a motion for summary judgement by Novartis. The judge declared that the United States had produced sufficient evidence pointing toward a “company-wide kickback scheme” and the government had not had to show evidence or provide proof of a “quid pro quo between physicians and Novartis” in order for the biopharma to stand trial.
On April 1, 2019 in an email to Reuters Novartis AG’s Eric Althoff noted “we are disappointed in today’s decision and look forward to presenting our case at trial.” Novartis ‘ position is that they government lacks sufficient evidence to go to trial.
Novartis has faced troubles in the past. Back in 2010 paid out $422.5 million to the federal government to resolve criminal and civil liability arising from the illegal marketing of certain pharmaceutical products.