SANOFI US PAYS $617,000 TO RESOLVE KICKBACK ALLEGATIONS

(The following is a reformatted version of a press release
issued by the Office of Maryland Attorney General Douglas F.
Gansler and received via electronic mail. The release was
confirmed by the sender.) 
AG Gansler: Sanofi US Pays $617,000 to Resolve Medicaid Kickback
Allegations 
New Jersey-based company also falsified sales information
to get higher reimbursement for osteoarthritis drug 
Baltimore, MD (August 22, 2013) - Attorney General Douglas F.
Gansler announced today that Maryland, joining with other
states, has settled allegations that Sanofi-Aventis U.S. Inc.,
(now Sanofi US Services, Inc. and Sanofi Aventis U.S. LLC --
collectively “Sanofi US”) paid physicians to purchase and
prescribe the medication Hyalgan in violation of the federal
Anti-Kickback Statue and various state anti-kickback laws.
Sanofi US, a New Jersey-based company, will pay the
participating state Medicaid programs a total of approximately
$617,000, with $5,026.35 going to the Maryland Medicaid program.
That amount will be shared with the federal government, which
partially funds the state Medicaid program. 
“Drug companies that use bribes to boost their bottom lines show
total disregard for the health and welfare of consumers,” said
Attorney General Gansler. “This settlement demonstrates that
businesses attempting to cheat the system will be held
accountable.” 
Hyalgan is used to treat osteoarthritis pain in the knee. The
settlement resolves allegations that Sanofi US offered and
provided free Hyalgan units with knowledge that physicians could
obtain reimbursement from Maryland’s Medicaid Program as if they
had paid for the drugs and/or knew that the units were not free
because they were offered only in exchange for purchasing
additional quantities of Hyalgan. Additionally, the settlement
resolves allegations that Sanofi US submitted inflated “Average
Sales Price” (ASP) information to the government, resulting in
inflated Medicaid reimbursement for Hyalgan in states that used
ASP to calculate reimbursement rates for the product. 
In announcing the settlement, Attorney General Gansler thanked
Assistant Attorney General Jeremy Dykes and Medicaid Fraud
Control Unit Investigative Auditor Carol Kelly for their work on
this case. 
CONTACT:
David Paulson - 410-576-6357
dpaulson@oag.state.md.us 
Alan Brody - 410-576-6956
abrody@oag.state.md.us 
(bjh) NY 
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