Commercial Incyte agrees to pay $12.6M to settle kickback allegations

Incyte agrees to pay $12.6M to settle kickback allegations


A Delaware-based pharmaceutical firm was accused of breaching the Federal False Claim Act by paying rebates and has decided to pay a settlement amount of $12.6 million to resolve this accusation.

According to the Department of Justice, this deal has resolved the accusations against Incyte that it reimbursed the copays of some people who were taking Jakafi for cancer treatment, by using an autonomous organization, between November 2011-December 2014. Jakafi has been authorized for the treatment of myelofibrosis, a type of bone-marrow cancer.

Incyte was the only sponsor of the fund established to help myelofibrosis patients only in November 2011, according to the authorities. Government officials claimed that Incyte had used those funds to cover the prescription costs of patients receiving federal benefits and taking Jakafi but were not qualified for assistance from the donations due to the absence of myelofibrosis.

Incyte refused to accept any allegations in a statement and said that the settlement deal does not mean acknowledgment of charges against the company.

“This resolution simply reflects Incyte’s desire to put this matter behind it and to continue to prioritize the health and wellbeing of individuals with serious life-threatening conditions,” the company stated.

Justin Dillon, a former Incyte enforcement manager, had filed a blabbermouth lawsuit in the Eastern District of Pennsylvania. Dillon would get $3.6 million from the settlement money.

Federal officials claimed that Incyte executives put pressure on the foundation to offer financial support to unqualified patients and these patients were assisted by Incyte’s contractor to fill out applications for financial assistance. Incyte used the system to submit false requests to Medicare and TRICARE (federal health care program for the military members) for Jakafi, according to officials.

Incyte stated that it had obeyed the guidelines of the Office of Inspector General of the US Department of Health and Human Services and that the firm “believes that it complied with the HHS-OIG guidance, did not violate the law and did not have any intention to do so.”

A pharmaceutical firm, under the Anti-kickback law, is restricted to give or pay any money or other valuable consideration to encourage federally insured patients to buy the company’s product.

Approximately, 1900 people around the world are working for Incyte, which is located in Wilmington. The business, which has earned millions of dollars in government assistance, has been characterized as “ a real Delaware success story” by Governor John Carney.

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