Novartis must face claims it paid kickbacks to promote MS drug, US appeals court rules

Jonathan Stempel - Reuters - 27/12
A U.S. appeals court on Friday revived a whistleblower lawsuit accusing Swiss drugmaker Novartis of paying illegal kickbacks to doctors to induce them to promote its blockbuster multiple sclerosis drug Gilenya.
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NEW YORK, Dec 27 (Reuters) - A U.S. appeals court on Friday revived a whistleblower lawsuit accusing Swiss drugmaker Novartis (NOVN.S), opens new tab of paying illegal kickbacks to doctors to induce them to promote its blockbuster multiple sclerosis drug Gilenya.
In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan said the whistleblower Steven Camburn can try to prove that Novartis violated the federal False Claims Act by holding "sham" speaker events to boost Gilenya sales.
Camburn, a former Novartis sales representative, said the drugmaker paid doctors thousands of dollars and treated them to dinners at high-end restaurants to speak at purportedly educational events that were actually social in nature.
He said this caused government health insurance programs including Medicare Part D, Medicaid and TRICARE to be defrauded when doctors and pharmacies submitted reimbursement claims for Gilenya that were tainted by kickbacks.
Circuit Judge Myrna Perez said Camburn sufficiently alleged that Novartis holding speaker events with few or no...
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