AMGEN PAYS $870 MILLION TO RESOLVE WHISTLEBLOWER CASE ON KICKBACK ASSERTIONS

Amgen, the world’s largest biotechnology company has agreed to pay a wopping $870 million to resolve kickback allegations filed originally in a whistleblower lawsuit and alleging improper sales of drugs including Aranesp an anemia medication. One specific allegation by a former Sales Representative Kassie Westmoreland contends that Amgen officials provided overfilled vials of Arabesp to physicians and then encouraged then to bill Meicare and Medicaid for the extra amounts. Last year, a federal judge in Boston dismissed claims that Westmoreland had filed on behalf of various states under their state False Claims Act laws, but an appellate court reinstated most of those suits in July. Amgen has asked the Supreme Court to review that decision. In a public filing, the company also said the Federal Government maintains that 10 whistleblowers claim Amgen engaged in a wide variety of illegal marketing practices including paying doctors and a group of purchasing organizations kickbacks so they would use the anemia drug Aranesp. Yesterday, Amgen sales if its stock rose on the market.