Feds, states settle for $25 million in Amgen case

Published: Thursday, April 18, 2013 at 9:25 a.m.
Last Modified: Thursday, April 18, 2013 at 9:25 a.m.

TALLAHASSEE, Fla. — Biotechnology and drug firm Amgen (NASDAQ: AMGN) has agreed to pay $24.9 million to resolve claims it illegally promoted its anemia drug to nursing homes and long-term care facilities.

Attorney General Pam Bondi announced the settlement on Wednesday. Amgen had been accused of paying kickbacks and defrauding federal and state Medicaid programs.

All 50 states were part of the settlement. Florida will receive more than $207,000.

A spokeswoman for Thousand Oaks, Calif.-based Amgen said the company denies all of the allegations that were resolved by the settlement.

Bondi said institutional pharmacies Omnicare and PharMerica asked Amgen for extra rebates on the drug Aranesp.

The pharmacies had to agree to promote Aranesp in nursing homes they served. That meant inducing medical professionals to switch patients from other drugs to Aranesp.

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