Shire Pharmaceuticals, an Ireland-based global specialty biopharmaceutical company, has agreed to pay $350 million to settle allegations of paying kickbacks. It was alleged that the company bribed physicians and clinics to lure them into using its diabetic ulcer treatment.
As stated by A. Lee Bentley, the U.S. Attorney General for the Middle District of Florida, a company that Shire acquired in 2011, Advanced BioHealing, continued to bribe providers with dinners, travel, entertainment, and medical equipment so they may promote the usage of Dermagraft, a skin substitute that is meant to help treat foot ulcers. False claims under this kickback scheme were submitted to the Department of Veterans Affairs.
The kickback scheme was supervised by three executives, all of whom, along with the providers who received kickbacks, were convicted as well.
In the words of a spokeswoman for Shire, “In entering into the settlement, Shire has not admitted wrongdoing of any kind.” She added, “We remain focused on our mission of enabling people with life-altering conditions to lead better lives, and we are committed to doing so in a manner that meets the highest level of ethical standards, and that is in compliance with federal and state laws.”
