Shire Agrees USD350 Million US Dermagraft Kickback Settlement

LONDON (Alliance News) - Irish drugmaker Shire PLC on Wednesday agreed ...

Alliance News 12 January, 2017 | 4:59AM
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LONDON (Alliance News) - Irish drugmaker Shire PLC on Wednesday agreed to pay USD350.0 million to settle allegations made by US lawmakers that it used kickbacks and other unlawful methods to get clinics and physicians to overuse its Dermagraft bio-engineered human skin substitute.

The allegations, made by the US Department of Justice, were made against Shire and Advanced Biohealing, a firm Shire bought in 2011. Shire sold the assets associated with Dermagraft, used to treat diabetic foot ulcers, in early 2014.

The case against Shire alleged salespeople for Dermagraft provided "lavish dinners, drinks, entertainment and travel", medical equipment, unwarranted payments for purported speaking arrangements and "bogus case studies" to induce physicians to use the product.

"This settlement represents the largest False Claims Act recovery by the United States in a kickback case involving a medical device," said Principal Deputy Assistant Attorney General Benjamin Mizer, who heads the Justice Department's Civil Division.

"Kickbacks by suppliers of healthcare goods and services cast a pall over the integrity of our health care system. Patients deserve the unfettered, independent judgement of their health care professionals," Mizer added.

Shire shares closed down 0.6% at 4,803.87 pence on Wednesday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Shire PLC 4,265.30 GBX -1.97
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