Maryland to Receive Funds from $39 Million Drug Manufacturer Settlement

Daiichi-Sankyo allegedly gave kickbacks to physicians to prescribe its drugs

Baltimore, MD - Attorney General Brian E. Frosh announced today that Maryland, joined by multiple states and the federal government, has secured a settlement with Daiichi Sankyo, Inc. ("Daiichi"), a global pharmaceutical company, to resolve allegations that it defrauded government healthcare programs by providing kickbacks to physicians to prescribe its drugs.

Under the agreement, Daiichi will pay more than $39 million to the states and the federal government. The Maryland Medicaid Program will receive $42,965.81, a portion of which will be paid to the federal government, which partially funds the program.

"Patients need to be able to trust that their doctors will provide sound medical advice and consultation without being influenced by big pharmaceutical companies more interested in profit margins than patient care," said Attorney General Frosh.

Daiichi allegedly reimbursed honoraria payments and meals and made other payments to physicians who participated in the company's medical education programs from January 1, 2005, through March 31, 2011, and other speaker programs from January 1, 2004 through February 4, 2011. The settlement covers drugs sold under the brand names Azor, Benica, Tribenzor and Welchol.

The federal Anti-Kickback Statute was enacted in 1972 to ensure that physicians' medical judgment is not manipulated by improper payments or gifts. The statute generally prohibits anyone from offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid.

Attorney General Frosh thanked Assistant Attorney General Anna S. Kelly and Medicaid Fraud Control Unit Chief Auditor Ruth Jarrell for their work on this case.