PA Firm Settles False Claims Case for $4 Million

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Lehigh Valley Technologies (LVT) has agreed to pay $4 million to settle False Claims Act allegations that it designed a scheme to avoid paying fees to FDA associated with NDAs. A Justice Department news release says the Allentown, PA, firm is a drug company that develops and commercializes certain human drug products.

The release says the law provides that FDA can waive the prescription drug user fee associated with an NDA for a small business applicant submitting its first application. LVT had received a waiver in 2010 for its oxycodone HCl NDA, the department says. When it wanted to submit two NDAs relating to potassium chloride for oral solution, it would have had to pay over $2 million in PDUFA fees.

However, the government says, the company paid two other companies to submit NDAs in their own name. The LVT payment was contingent on FDA granting waivers to the two companies. “LVT prepared and controlled all of the submissions that the companies made to FDA relating to the NDA approval,” the release says. “Neither LVT nor the companies disclosed to the government the agreements despite the government’s request for such information. Not knowing of the agreements, FDA granted fee waivers and approved both NDAs.”

The case was investigated by the FDA Office of Criminal Investigations.

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