A Delaware Pharma Corporation has agreed to pay $12.6 million to settle charges that it paid kickbacks in violation of the federal False Claims Act. The settlement, according to the Department of Justice, addresses claims that Incyte Corporation. illegally used an independent foundation to cover the copays of some people taking the company’s cancer medication Jakafi between November 2011 and December 2014.
Jakafi has been licenced to treat myleofibrosis, a form of bone marrow cancer. Incyte was the sole donor to a fund established in November 2011 to help only myleofibrosis patients, according to authorities. Incyte used the fund to pay the copays of federal beneficiaries taking Jakafi who were ineligible for help from the fund because they did not have myleofibrosis, according to government officials.
Justin Dillon, a former Incyte enforcement executive, filed whistleblower lawsuits in the Eastern District of Pennsylvania, and the deal settles those claims. Dillon will earn about $3.6 million from the settlement funds.
According to federal officials, Incyte executives persuaded the foundation to offer financial support to disqualified patients, and Incyte’s contractor assisted ineligible patients in filling out assistance applications. Officials said Incyte used the scheme to send false claims for Jakafi to Medicare and TRICARE, the federal health-care programme for military personnel.