Pfizer has agreed to pay $59.7 million to settle allegations that its subsidiary, Biohaven Pharmaceutical Holding Company, engaged in illegal practices before its acquisition. The settlement resolves claims that Biohaven violated the anti-kickback statute by providing improper payments, including speaker honoraria and expensive meals, to healthcare providers between March 2020 and September 2022. These incentives allegedly aimed to influence prescriptions of the migraine drug Nurtec ODT, compromising medical decision-making. The U.S. government contends that Biohaven selected certain doctors for its speaker bureau, offering paid engagements and benefits to encourage increased prescriptions. Pfizer ended these speaker programs after acquiring Biohaven in October 2022.
The settlement results from a coordinated investigation involving the Department of Justice, the Department of Health and Human Services Office of Inspector General, and the Department of Defense. The case was brought under the False Claims Act by whistleblower Patricia Frattasio, a former Biohaven sales representative. She will receive approximately $8.4 million from the federal recovery. The settlement includes $50.2 million allocated to the federal government and $9.5 million to state Medicaid programs. Officials emphasized the importance of protecting federal healthcare programs from improper financial influences and ensuring that medical decisions prioritize patient well-being.
