Lansing, MI – Michigan has reached a settlement with Pfizer’s subsidiary, Biohaven Pharmaceutical Holding Company Ltd., resolving allegations of kickback schemes designed to promote the prescription of Nurtec ODT, a migraine treatment drug. The settlement, which involves Pfizer paying a total of $59.7 million, addresses claims that Biohaven engaged in fraudulent activities by offering health care providers substantial incentives to prescribe Nurtec to Medicaid and other federal health care program beneficiaries.
Between March 2020 and September 2022, Biohaven allegedly paid kickbacks, including cash, lavish meals, and honoraria to healthcare providers in exchange for their participation in speaker programs that promoted the drug. These programs were intended to encourage the use of Nurtec among patients covered by federal health care programs, violating the Anti-Kickback Statute.
Some healthcare providers allegedly received tens of thousands of dollars for participating in these programs, with certain providers reportedly attending multiple events on the same topic. The events were sometimes attended by the providers’ spouses, family members, and friends, even though they had no educational purpose in attending. In addition, providers were treated to expensive meals and drinks, all paid for by Biohaven, without any meaningful educational value.
As part of the settlement, Michigan will receive $155,930.53 in restitution and other recoveries. Michigan Attorney General Dana Nessel criticized the fraudulent practices, stating that Michigan taxpayers should not be burdened by corporate actions that prioritize profits over patient care.
The case was initially brought forward by a whistleblower, a former Biohaven employee, who will receive a portion of the settlement amount for their role in exposing the scheme. This settlement underscores the continued vigilance in addressing corporate misconduct within the healthcare sector and ensuring that programs designed to benefit patients remain free from undue influence.
