What Is An Acceptable Drug Discount? DOJ and Industry Disagree

Government contends a price reduction is the only discount exception to the Anti-Kickback Statute; PhRMA says this interpretation puts companies at risk of criminal liability for other discount arrangements.

The Department of Justice’s position in a False Claims Act case alleging a medical supply manufacturer engaged in kickbacks could potentially threaten formulary-based discounts, rebates and other discount arrangements.

Massachusetts US District Court Judge Rya Zobel initially dismissed the whistle-blower complaint against Coloplast AS, maker of ostomy and...