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Baxter cleared from DoJ antitrust saline probe

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Baxter (NYSE:BAX) said yesterday that it has been cleared from a U.S. Dept. of Justice antitrust probe, launched in 2017, investigating companies that market intravenous saline solutions. The probe came as hospitals endured a shortage of intravenous saline solutions, which are used to hydrate hospital patients. The shortage dates back to late 2013, after drugmakers told […]

Feds indict 9 in $950m Operation “Spinal Cap” fraud case

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US federal prosecutors with the Department of Justice this week unsealed charges against nine new defendants they claim are part of a long-running healthcare fraud case responsible for more than $950 million in fraudulent claims. The fraud scheme was reportedly run by former Long Beach, Calif.-based Pacific Hospital owner Michael Drobot, who was involved in […]

Former S.D. dentist pleads guilty to $17m medtech fraud scheme

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A former dentist from South Dakota plead guilty last week to a $16.6 million scheme to defraud consumers through the sale of a sham laser device and associated treatments, promising it would cure more than 200 different conditions, according to a US Department of Justice report. If you want a dentist you can really trust […]

Medical device enforcement is getting more serious—particularly in Northeast

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There has been aggressive momentum on the side of federal medical device anti-corruption enforcers, in particular in the Northeast. Maureen Ruane and Scott McBride, Lowenstein Sandler There are more questions than answers on what a new and unconventional administration in the White House will do in 2017 in many areas, no less so in medical […]

Shire to pay feds $350m to settle DermaGraft kickbacks case

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The U.S. Justice Dept. said yesterday that Shire (NSDQ:SHPG) and its subsidiaries will cough up $350 million to settle allegations that Shire and the company it acquired in 2011, Advanced BioHealing, gave kickbacks to clinics and physicians in exchange for using its bioengineered human skin substitute, Dermagraft. “This settlement represents the largest False Claims Act recovery by the […]

Ex pharma execs first to be charged in generic drug pricing case

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Former Heritage Pharmaceuticals CEO Jeffrey Glazer and ex-president Jason Malek were hit yesterday with the 1st criminal charges from a 2-year federal investigation in an ongoing generic drug pricing case. The 2 former executives were charged by federal authorities with price collusion for doxycycline hyclate, a widely used antibiotic, and a diabetes therapy called glyburide […]

Zimmer Biomet, U.S. Justice Dept. near deal on bribery charges

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The U.S. Justice Dept. and Zimmer Biomet (NYSE:ZBH) are close to reaching a deal to settle bribery allegations against the orthopedic device giant, according to federal prosecutors. The DoJ alleged that Biomet and its subsidiaries paid out more than $1.5 million in illegal kickbacks to employees of state-owned health services in Brazil and China. Biomet paid […]

UPDATE: BTG’s U.S. Biocompatibles business to pay $36m settlement, plead guilty to misbranding

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Updated to include BTG’s guilty plea entered Nov 7. BTG (LON:BTG) said last month that it agreed to pay the U.S. Justice Dept. $36 million (£28.4 million) to settle a probe into the marketing of the LC Bead embolization microspheres made by its Biocompatibles subsidiary. The company plead guilty on Monday, November 7, to charges of improperly marketing […]

Senate panel adds to call for hearings over Mylan’s EpiPen pricing

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The U.S. Senate Judiciary Committee yesterday called on the Federal Trade Commission to investigate whether Mylan (NSDQ:MYL) broke the law after reports claimed the EpiPen maker prevented schools from buying competing allergy treatments. In a letter penned to the FTC, committee chairman Sen. Charles Grassley (R-Iowa) and ranking member Sen. Patrick Leahy (D-Vt.) wrote, “increasing patient access […]

Mylan, Teva crash as DOJ could file charges by end of year

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The U.S. Justice Dept. could reportedly file charges in its generic-drug pricing probe into companies including Mylan Pharmaceuticals (NSDQ:MYL) and Teva Pharmaceuticals (NYSE:TEVA) by the end of year. The department is examining whether the generic drug makers colluded on drug pricing, Bloomberg reported yesterday. The news source said that Mylan and Teva have disclosed subpoenas and are cooperating […]

DoJ settles Grifols probe

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The U.S. Justice Dept. closed its probe of Grifols (NSDQ:GRFS), according to an SEC filing from the company posted today. The DoJ told the company that it closed its investigation, which concerns “possible violations of the U.S. Foreign Corrupt Practices Act,” Sept. 29, according to the filing. Grifols wrote that in its decision to not prosecute, the DoJ acknowledged […]

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