US Bioservices Corp. Settles Fraud Suit for $13.4 Million

US Bioservices Corp. will pay $13.4 million to settle claims that the company violated the anti-kickback law and the False Claims Act by participating in a kickback scheme with Novartis involving its iron-lowering drug Exjade (desfirasirox). According to a Justice Department news release, US Bioservices was promised additional patient referrals by Novartis and related benefits in return for refilling a higher percentage of Exjade than the two other specialty pharmacies that also dispensed it.

The company will pay about $10.6 million to the federal government and about $2.8 million to resolve numerous state law civil fraud claims.

In prior lawsuits, the government says, Novartis paid $390 million to settle claims against it and the other two pharmacies paid $75 million.

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