Novartis to pay US$390 mil in US settlement over pharmacy kickbacks

A sign of Swiss pharmaceutical giant Novartis is seen on the top of a building at the company's campus on Oct 27, 2015 in Basel.
A sign of Swiss pharmaceutical giant Novartis is seen on the top of a building at the company's campus on Oct 27, 2015 in Basel. PHOTO: AFP

WASHINGTON (Reuters) - Novartis Pharmaceuticals Corp will pay $390 million (S$551 million) to resolve US charges alleging it paid speciality pharmacies illegal kickbacks in exchange for inducing patients to refill certain medications, according to a court filing on Friday.

The settlement between the company, the federal government and more than 40 states centres on payments that the drug manufacturer paid between 2007 and 2012 to certain speciality pharmacies to entice them to recommend some of the company's prescription drugs to Medicaid and Medicare patients.