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NEW YORK - Biotechnology behemoth Amgen Inc. is being sued by 15 states alleging the company gave kickbacks to medical providers to help boost sales of the anemia drug Aranesp.
The New York Attorney General's office says it and 15 states allege the Thousand Oaks, Calif., company encouraged medical providers to bill third parties, including Medicaid, for Aranesp, which was available to them at no cost. The lawsuit also alleges that Amgen conspired to offer kickbacks, including nonexistent consultancy deals and weekend retreats, to boost prescriptions of Aranesp.
Sales of the drug have been slipping for more than a year because of increased safety concerns and stricter safety warnings.
"We believe that the allegations are without merit, and we look forward to the opportunity to examine these matters with the states before the Court," Amgen said, in a statement.
The company said it is now limited in its remarks because of the litigation, but it has a "solid" compliance program.
"Drugs should be prescribed to patients on the basis of need, effectiveness, and safety, not on a corporate giant's promise of an all-expense paid vacation," Cuomo said.
The lawsuit says Amgen's alleged actions caused thousands of ineligible claims for Aranesp to be paid and millions of dollars in damages to state Medicaid programs.
States involved in the lawsuit include California, Delaware, Florida, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Nevada, New Hampshire, New York, Tennessee, and Virginia, along with the District of Columbia.
The case is being lead by Special Assistant Attorney General Margot Schoenborn of the New York Attorney General's Medicaid Fraud Control Unit.
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