Ireland-based Shire Pharmaceuticals has agreed to pay $350 million to settle allegations that it bribed clinics and physicians to use its diabetic ulcer treatment.
A. Lee Bentley, the U.S. attorney general for the Middle District of Florida, said Advanced BioHealing, a company Shire acquired in 2011, bribed providers with dinners, entertainment, travel and medical equipment to promote the use of Dermagraft, a skin substitute used to help treat foot ulcers.
The kickback scheme caused false claims to be submitted to the Department of Veterans Affairs.
Shire sold the assets associated with Demograft in early 2014.
In addition to the settlement, three executives who supervised the kickback scheme were convicted as well as providers who received kickbacks.
In a prepared statement, a spokeswoman for Shire said, “In entering into the settlement, Shire has not admitted wrongdoing of any kind.” She added, “We remain focused on our mission of enabling people with life-altering conditions to lead better lives, and we are committed to doing so in a manner that meets the highest level of ethical standards and that is in compliance with federal and state laws.”
