U.S. Files Against Regeneron for Inflated Drug Price Reporting

The Department of Justice (DOJ) filed a complaint under the False Claims Act (FCA) against Regeneron Pharmaceuticals alleging that the company knowingly submitted average sales price (ASP) reports to CMS that resulted in inflated Medicare reimbursements to the company.

According to the complaint, “Regeneron has paid hundreds of millions of dollars to subsidize Eylea purchases by reimbursing distributors for credit card processing fees — on the condition that the distributors use these payments to lower the effective price they charged for Eylea to doctors and retina practices using credit cards.”

The lawsuit was filed under the whistleblower provisions of the FCA which allow private parties to sue on behalf of the U.S. and receive a portion of the recovery. The FCA then permits the U.S. to intervene in and take over the action, as it has done in this case. If a defendant is found liable for violating the FCA, the U.S. may recover three times the amount of its losses plus applicable penalties.

Read the Department of Justice complaint here.

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