Friday, August 8, 2014

Novartis can't convince judge to free it from kickbacks case

Novartis ($NVS) has failed again to convince a federal judge to boot a Department of Justice kickbacks case against it that claims the Swiss drugmaker showered pharmacies with discounts and rebates to boost sales of two drugs.
U.S. District Judge Colleen McMahon of New York in May said the case would progress but gave Novartis one last chance to make a compelling argument that the government's civil litigation attempt fell short of the legal requirements. But according to Reuters, Judge McMahon on Thursday rejected Novartis' arguments that the DOJ's case was based on a "potentially limitless" theory that any claims submitted by pharmacists who got the special benefits from Novartis could be included. It said the DOJ should have to prove that the alleged scheme was the actual motivator for pharmacists to sell the drugs involved.

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