“Scandal Unveiled: Novartis Cracks Under scrutiny as Court Orders Investigation of MS Medication Kickbacks”

A US Appeals Court Revives Whistleblower Lawsuit Against Novartis Over Alleged Kickbacks for Gilenya

In a recent decision, the 2nd US Circuit Court of Appeals in Manhattan has revived a whistleblower lawsuit against Swiss drugmaker Novartis, accusing the company of paying illegal kickbacks to doctors to promote its multiple sclerosis drug, Gilenya. The whistleblower, Steven Camburn, a former Novartis sales representative, claims that the company used “sham” speaking events to boost sales of Gilenya, in violation of the federal False Statements Act.

According to Camburn, Novartis paid doctors thousands of dollars, treated them to dinners at upscale restaurants, and sponsored speaking events that were actually social in nature. He further alleges that these kickbacks led to fraud in government health insurance programs, including Medicare Part D, Medicaid, and TRICARE.

In its ruling, the appeals court found that Camburn had fully accused Novartis of hosting speaking events with few or no legitimate attendees, paying doctors exorbitant fees for canceled events, and choosing to speak to doctors who had not attended these events. The court concluded that these actions constituted a “strong inference” that Novartis intended to induce fraud.

Novartis has not commented on the matter, and Camburn’s attorney has not responded to a request for comment.

Whistleblower Lawsuit Process

The False Whistleblower Act allows whistleblowers to sue on behalf of the government and share in the compensation. The process of filing a whistleblower lawsuit typically begins with the whistleblower submitting a complaint to the US Department of Justice or the relevant regulatory agency. If the complaint is deemed meritorious, the government will investigate and file a lawsuit under the whistleblower protection provisions of the False Claims Act.

In this case, Camburn sued Novartis in May 2013, shortly after Gilenya received federal regulatory approval. The case has been ongoing for nearly a decade, with Novartis paying more than $729 million to settle US government charges of illegal kickbacks in 2020.

Gilenya Sales Decline

It is worth noting that sales of Gilenya have been declining due to competition from generic drugs. According to recent reports, sales fell from $3.22 billion in 2019 to $925 million in 2023, with sales in the first nine months of 2024 totaling $443 million.

FAQ

Q: What is the alleged wrongdoing by Novartis?
A: Novartis is accused of paying illegal kickbacks to doctors to promote its multiple sclerosis drug, Gilenya, in violation of the federal False Statements Act.

Q: What is the whistleblower’s role in the case?
A: Steven Camburn, a former Novartis sales representative, is the whistleblower in the case. He is suing Novartis on behalf of the government and seeking compensation.

Q: What is the purpose of the False Whistleblower Act?
A: The False Whistleblower Act allows whistleblowers to sue on behalf of the government and share in the compensation. It is designed to encourage whistleblowers to come forward and report illegal activities.

Conclusion

The reviving of the whistleblower lawsuit against Novartis is a significant development in the ongoing saga surrounding the company’s alleged illegal kickbacks to doctors. The allegations of fraud and corruption are serious and have potentially far-reaching implications for the healthcare industry. As the case proceeds, it is likely that we will learn more about the scope and extent of Novartis’s alleged wrongdoing.