Sandoz, a generics subsidiary of drugmaker Novartis, agreed to pay $3.5 million to settle allegations that sales of a drug deemed ineffective by the Food and Drug Administration continued to be billed to Medicaid and the military's Tricare program.
Sandoz to pay $3.5 million to settle allegations
The allegations stem from an FDA determination made in 1999 that there was little evidence to support the effectiveness of a controlled-release form of nitroglycerin capsules used for treating chest pains and sold by Eon Labs, which was acquired by Germany-based Sandoz in 2005. Eon Labs submitted quarterly reports to the CMS through 2008 that failed to note that the product was no longer eligible for reimbursement, according to the settlement agreement.
The agreement stipulates that Eon Labs does not admit liability and denies the allegations, which originated in a whistle-blower lawsuit under the False Claims Act. Sandoz replied to a request for comment with a written statement saying only that a settlement was reached that brought “final closure” to the lawsuit.
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