In the wake of a whistleblower lawsuit alleging Takeda and its affiliated companies of engaging in Medicaid fraud through illicit reimbursement schemes and compensated referrals in Texas, the corporation has agreed to settle the allegations by paying a sum exceeding $42 million.
The Civil Medicaid Fraud Division of the Texas Attorney General’s office has reached an agreement with Takeda and several of its subsidiaries. The core accusation against the company revolves around violations of Texas’ Medicaid Fraud Prevention Act (TMFPA), a statute that, since the year 2000, has garnered approximately $2.5 billion in settlements, according to a press release from the Attorney General’s office.
The focal point of this lawsuit involves a whistleblower’s assertion that Takeda’s Shire division compensated clinical nurse educators to endorse and recommend the ADHD medication Vyvanse to healthcare providers. This arrangement was said to have occurred from January 2014 to December 2015. It’s pertinent to note that Takeda acquired Shire in 2019 for a substantial $62 billion.
Takeda, however, refuted these allegations. A spokesperson emphasized that the company holds a strong belief in the legality and ethical nature of its programs, emphasizing their contribution to addressing unmet medical needs of patients.
Nonetheless, the resolution of this matter is seen as being in the best interest of patients. The company’s spokesperson noted that the settlement ensures continued access to Takeda’s treatments and patient service initiatives for Medicaid beneficiaries within the state.
Texas’ Medicaid Fraud division has pursued similar charges against other pharmaceutical firms, including AstraZeneca. In 2018, AstraZeneca settled for $100 million to put to rest accusations of aggressive promotion of the antipsychotic drug Seroquel to child and adolescent patients.
Taking a step further back, in 2015, Glenmark Pharmaceuticals found itself liable for $11.25 million due to TMFPA allegations, which included the alleged inflation of drug prices to the Medicaid program through fraudulent means.
