Big Pharma subpoenaed over use of charities to inflate demand and jack up prices - Medicare fraud

[underpants]

Bloomberg


Three drugmakers have disclosed receiving subpoenas amid a widening federal investigation into pharmaceutical companies’ relationships with charities that help people afford their products.

Gilead Sciences Inc., Biogen Inc. and Jazz Pharmaceuticals Plc said they’ve received subpoenas this year for documents related to such nonprofits, though the companies provided few additional details. Two companies, Gilead and Jazz, said their subpoenas came from the U.S. Attorney for the District of Massachusetts. The filings didn’t disclose names of specific charities.

The new subpoenas follow an October disclosure from Valeant Pharmaceuticals International Inc. that it received subpoenas from U.S. Attorney’s offices in Massachusetts and the Southern District of New York, seeking materials related to Valeant’s patient-assistance programs.

As drug prices have surged, drugmakers’ large contributions to charities have given them a public-relations foil against backlash and helped keep patients from seeking lower-priced medicines, Bloomberg Businessweek reported this month. The seven biggest copay charities, which cover scores of diseases, reported combined contributions of $1.1 billion in 2014 -- more than double their 2010 figures.

[harrose]

1. No kidding... they're run by Rethugs

... of course they do criminal things.

[dixiegrrrrl]

3. Valeant Pharmaceuticals CEO, was fired but will get 83,000 a MONTH as a "consultant"!

Michael Pearson may have gotten sacked from Valeant Pharmaceuticals earlier this year, but he will still collect a paycheck.

The former CEO, who led the company through the thick of its drug-price gouging and faulty accounting allegations, was ousted from his position in March after Valeant’s stock had fallen over 60%. Pearson formally ended his run as chief executive in early May after former Perrigo CEO Joe Papa took the reins.

Pearson will receive a monthly fee of $83,333 until the end of 2016, and $15,000 for each month of 2017 that Valeant keeps his services. The agreement took effect May 2—meaning he will net about $663.975.84 in 2016 and has the opportunity to earn $180,000 in 2017 based on his consulting services alone.

http://fortune.com/2016/05/31/michael-pearson-severance-valeant/

Sure sounds like hush money to me............

[newthinking]

2. and there will be a slap on the hand fine and back to business as usual.

"Patience patience Big Pharma". Wait until the trade bills get passed.

A friend of mine (who was also a reporter in the 90's in Europe) once told me that much of the Mafia had gone into "legitimate" corporate business. More lucrative, less risky.

The business practices of these companies sure do remind one of criminal thinking....