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Novartis settlement

This article was originally published in The Gray Sheet

Executive Summary

Civil damages of $44.7 mil. will be paid by Novartis Nutrition to settle charges brought by the U.S. attorney's office in the Southern District of Illinois stemming from a Department of Justice investigation into marketing and pricing practices of the enteral pump industry, begun in the mid-1990s. Novartis affiliate OPI Properties' settlement includes a criminal plea and a $4.5 mil. fine. The investigation reportedly involved allegations of kickbacks in the form of discounted or free enteral pumps supplied in exchange for disposable pump set supply contracts with providers; charges for such pumps may have been passed on to Medicare and Medicaid. Competitor Abbott settled for more than $600 mil. in criminal and civil penalties in 2003 (1"The Gray Sheet" July 28, 2003, p. 7)...

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