Dompé U.S. to pay $32 million over co-pay kickback allegations, federal prosecutors say
The U.S. subsidiary of an Italian drugmaker agreed to settle claims that it funneled money through patient assistance charities to cover Medicare patients' co-pays for its eye drug Oxervate, the U.S. attorney's office in Boston said.
Dompé U.S., Inc., a California-based drugmaker, has agreed to pay $32 million to settle allegations that it paid the Medicare co-pays of patients taking its eye drug Oxervate through two patient assistance charities, federal prosecutors in Boston said Thursday.
The U.S. attorney's office said the payments, made between 2018 and 2021, were meant to induce purchases of the drug and violated the federal Anti-Kickback Statute and the False Claims Act. Medicare patients are generally required to pay part of the cost of a covered prescription, a requirement Congress imposed in part to keep pressure on drug prices, prosecutors said.
According to the settlement announcement, Dompé admitted that around the time Oxervate launched in the United States in 2018, company employees raised concerns about releasing the drug before money was paid to a foundation that would cover patients' co-pays for it. After talks with Dompé employees, two foundations opened funds that paid those co-pays, and the company contributed to them, prosecutors said.
Between 2019 and 2021, the company sometimes approved mid-year increases to the foundations or held money in reserve so it could steer funds to whichever foundation was running low, the office said. Dompé also sought data directly from the foundations and from a specialty pharmacy that served its patients, prosecutors said.
The company is the U.S. subsidiary of Dompé farmaceutici S.p.A., which is incorporated in Italy. The parent company voluntarily reported the conduct to prosecutors after an internal compliance review, and both companies cooperated with the government, the office said. Dompé changed its foundation contribution practices by 2022.
This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.