Biogen Will Settle for $22 Million Over Alleged Drugs Kickback Scheme

Biogen has agreed to a $22 million settlement to resolve allegations that donations it made to charities were kickbacks to Medicare patients for out-of-pocket costs associated with its multiple sclerosis medications.

According to the Department of Justice, Biogen together with specialty pharmacy Advanced Care Scripts made payments to two charities to cover co-pays for Medicare patients for Avonex (interferon beta-1a) and Tysabri (natalizumab).

 “By treating the foundations simply as conduits to pay the co-pays of its own patients, Biogen violated the anti-kickback statute and undermined Medicare’s co-pay structure, which Congress intended as a safeguard against inflated drug prices,” said U.S. Attorney Nathaniel R. Mendell.