Criminal Prosecution of Bayer Corporation
In 2003, Bayer Corporation paid more than $257 million in global settlement of the FCA and criminal allegations that it attempted to evade paying required rebates to state Medicaid programs for sales of two drugs, Cipro (an antibiotic) and Adalat (an anti-hypertensive). In what is known as a "lick and stick scheme," Bayer allegedly sold re-labeled drugs to a large HMO at significant discount, then concealed the discounts and so avoided having to pay millions of dollars in rebates to Medicaid. Bayer also pled guilty to charges filed by the United States Attorney for the District of Massachusetts that it violated the Federal Food, Drug and Cosmetic Act by failing to notify FDA that it was producing private label Cipro. The company also agreed to extend an ongoing The company also agreed to extend an ongoing Corporate Integrity Agreement with the HHS/OIG, and strengthen its terms to ensure that Bayer will accurately report its best price information to the government.
Source: HHS Health Care Fraud and Abuse Control Program, Annual Report for FY 2003
This article was posted on December 25, 2005.