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Gilead Sciences has reached a settlement amounting to $202 million with the U.S. government and several states, resolving allegations that the company utilized speaker programs as a means to provide kickbacks to physicians. These incentives aimed to encourage physicians to prescribe Gilead’s HIV medications, authorities reported on Tuesday.
According to the U.S. Attorney’s Office for the Southern District of New York, Gilead compensated doctors for their participation in these events through honoraria, as well as covering meal and travel expenses.
In exchange for these payments, Gilead sought to persuade these doctors to prescribe its drugs, which include notable treatments such as Biktarvy, Stribild, Genvoya, Complera, Odefsey, and Descovy. This practice was found to contravene the U.S. Anti-Kickback Statute, resulting in fraudulent claims to federal healthcare programs, including Medicare and Medicaid, as noted by the prosecutor’s office.
“Gilead persistently engaged in unlawful strategies to boost sales of its HIV medications by employing speaker programs to distribute kickbacks to physicians,” stated interim Manhattan U.S. Attorney Jay Clayton.
Clayton further emphasized that Gilead invested substantial resources in these initiatives, with expenditures exceeding $20 million in speaking fees and millions more allocated for extravagant meals, alcohol, and travel—intended solely to influence medical professionals’ prescribing practices and increase sales of their HIV treatments.
A representative from Gilead has not yet provided a statement in response to requests from CNBC.
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