The settlement resolves whistleblower claims that were filed in the Eastern District of Pennsylvania by Justin Dillon, a former Incyte compliance executive. Dillon will receive about $3.6 million of the settlement recovery.
Federal authorities said Incyte managers pressured the foundation to provide economic assistance to the ineligible patients, and that Incyte’s contractor helped ineligible patients complete applications for assistance. The scheme resulted in Incyte causing false claims for Jakafi to be submitted to the Medicare and TRICARE, the federal health care program for military members, officials said.
Incyte said it had followed guidance issued by the U.S. Department of Health and Human Services Office of Inspector General, and that the company “believes that it complied with the HHS-OIG guidance, did not violate the law and did not have any intention to do so.”
Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying money or any other thing of value to induce federally covered beneficiaries to purchase the company’s drugs.
Incyte, which is headquartered in Wilmington, has about 1,900 employees worldwide. Gov. John Carney has described the company, which has received millions of dollars in state subsidies, as “a real Delaware success story.”