Salix Pays $54 Million Fine Over Sham ‘Speaker Program’

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Salix Pharmaceuticals has agreed to pay $54 million to the U.S. government to settle a civil fraud lawsuit that alleged the company had violated the federal Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe Salix drugs and medical devices that were reimbursed by federal health care programs.  Specifically, the government contends that the company held these events frequently at high-end restaurants, where doctors were paid substantial honoraria to educate other doctors about a product, but in reality spent little or no time discussing the product.

As alleged in a complaint filed in Manhattan federal court, from 2009 to 2013, many of Salix’s speaker programs for Xifaxan, Apriso, Relistor, MoviPrep, OsmoPrep, Solesta, and Deflux were nothing more than social events at which Salix wined and dined doctors to induce them to write prescriptions for the products. “The speaker programs, which were typically held in restaurants, were supposed to be educational in nature and the cost of the meal was supposed to be modest,” a Justice Department release says. “But in practice, Salix held many speaker programs that were primarily social in nature, including events where it repeatedly invited the same doctors, who frequently were from the same practice or otherwise knew each other, to attend the same exact program on the same exact topic.” During this period, the government says the company spent about $25 million on speaker payments and meals.

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