Texas sues Sanofi over alleged kickback scheme for drug prescriptions

Texas sues Sanofi over alleged kickback scheme

Texas Attorney General Ken Paxton has filed a lawsuit accusing pharmaceutical giant Sanofi of running an illegal kickback scheme. The suit alleges the company provided free nurses and insurance support services to doctors to boost prescriptions of its drugs.

By offering these services, Sanofi allegedly managed key aspects of patient care that physicians would otherwise handle themselves. The state argues this constitutes a "powerful and improper inducement" to choose Sanofi's medications over competitors'.

Services targeted chronic disease treatments

The lawsuit focuses on Sanofi drugs that treat chronic conditions like diabetes, multiple sclerosis, and hemophilia. Because these are long-term illnesses, the alleged scheme could generate revenue for Sanofi for years from a single patient.

Paxton contends this arrangement may have led doctors to prescribe Sanofi products even when they were not the best therapeutic option. The state is seeking financial penalties and an injunction to stop the practice.

Alleged violations and potential impact

The lawsuit claims Sanofi violated both the Texas Medicaid Fraud Prevention Act and the Texas Deceptive Trade Practices Act. Key allegations in the petition include:

• Providing free nurse ambassadors to perform clinical services in doctors' offices
• Offering extensive insurance support to secure patient coverage for Sanofi drugs
• Creating a system where these free services are tied to prescription volume
• Generating sustained revenue from chronic illness treatments through this arrangement

The state argues these services represent a substantial financial benefit that improperly influences prescribing decisions. A Sanofi spokesperson told STAT the company believes its "services are appropriate and beneficial" and that it intends to defend itself vigorously.