Attorney General Dave Sunday announced that Pennsylvania will receive over $1 million as part of a $202 million multistate settlement with Gilead Sciences, Inc. over an illegal kickback scheme to promote HIV drugs.
The settlement, involving 49 Attorneys General and coordinated with the U.S. Department of Justice, addresses Gilead’s violations of federal law by providing incentives to healthcare providers to prescribe its HIV medications. The scheme led to false claims being submitted to government healthcare programs.
“Gilead used illegal kickbacks to corner the market on these life-saving drugs needed by one million Americans living with HIV,” said Pennsylvania Attorney General Dave Sunday.
From January 2011 to November 2017, Gilead Sciences engaged in practices that violated federal anti-kickback laws, according to the AG’s office. The company provided healthcare providers with gifts, meals, and travel expenses to promote its HIV drugs, including Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy.
Gilead allegedly paid high-volume prescribers substantial amounts to participate as speakers in promotional programs. These programs often included travel to attractive destinations and dinners at upscale restaurants.
The AG’s office said Gilead’s internal compliance mechanisms failed to prevent these violations, as the company’s policies did not adequately restrict sales representatives from offering improper incentives.
Pennsylvania is expected to receive $1.28 million, and $642,189 will go directly to its Medicaid program.
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