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US: California AG sues Abbvie for illegal kickbacks

By  |  September 23, 2018

Pharmaceutical company Abbvie had its shares drop about 3% last week after California’s insurance commissioner Dave Jones sued the company, alleging Abbvie has been providing kickbacks in the form of nursing support and insurance assistance to prompt doctors to write prescriptions for its arthritis drug Humira.

Mr. Jones, who filed a complaint in Alameda County Superior Court, alleges the company’s “Ambassador” program was intended to “keep patients on a dangerous drug at any cost.”

AbbVie claimed in a statement that it “operates in compliance with the many state and federal laws that govern interactions with healthcare providers and patients.”

Credit Suisse analysts said that the lawsuit could have extensive repercussions in the drug industry since the kickback practices “are similar to what other biopharma companies have also used to help patients start and stay on medications that their doctor prescribes.”

Full Content: Bloomberg & The Wall Street Journal

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