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ARTICLE · 25 NOVEMBER 2020

How Specialty Pharmacies Can Safeguard Against Fraud When Using Patient Assistance Programs

Bass, Berry & Sims PLC
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Specialty pharmacies should carefully evaluate their relationships with drug manufacturers and charitable assistance programs in light of an August $3.5 million settlement between the DOJ and specialty pharmacy Advanced Care Scripts.

United StatesCriminal Law
Whitney Snow
Whitney Snow
Julia Tamulis
Julia Tamulis
Shannon Wiley
Shannon Wiley

Specialty pharmacies should carefully evaluate their relationships with drug manufacturers and charitable assistance programs in light of an August $3.5 million settlement between the United States Department of Justice (DOJ) and specialty pharmacy Advanced Care Scripts (ACS). This case demonstrates the importance of properly establishing patient assistance programs to avoid allegations of kickbacks.

The Case Against ACS and Teva

The DOJ alleged ACS worked in a closely orchestrated process to effectively "pass through" to government program beneficiaries with prescriptions for Copaxone donations from Teva Neuroscience, Inc. (Teva) to charitable assistance programs. The government has also filed suit against Teva arising from the same arrangement.  In that complaint, the government describes the arrangement between Teva and ACS in detail.

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