Teva Inks $450m Deals Over US Kickback Claims, Including Alleged Copay Violations

Teva has agreed to pay $425m to resolve a four-year-old US Department of Justice accusation that the firm violated the False Claims Act and the Anti-Kickback Statute by using two foundations to funnel hundreds of millions of dollars in kickbacks to Medicare patients for its Copaxone (glatiramer acetate), while also raising the price of the multiple sclerosis drug from approximately $17,000 per year to more than $73,000 per year.

According to the August 2020 suit, between 2006 and 2017, Teva paid The Assistance Fund (TAF) and Chronic Disease Fund (CDF) with the understanding that the foundations would use the money to cover patients’ Medicare copays for Copaxone. Teva was accused of paying more than $300m to the foundations