Life Sciences Cos. Should Assess Charitable Donations Programs

By Gary Giampetruzzi, Jane Yoon and Jessica Montes (June 20, 2018, 3:27 PM EDT) -- On June 6, 2018, H. Lundbeck A/S announced that its subsidiary, Lundbeck LLC, (referred to as Lundbeck), has reached a $52.6 million agreement-in-principle with the U.S. Attorney's Office for the District of Massachusetts, or USAO-MA, to resolve an investigation into its donations to independent copay assistance charities. This announcement comes over three years after the USAO-MA launched an industry-wide investigation into manufacturer donations to charities providing copay assistance to federal health care program beneficiaries, and this is the fifth company in the last nine months to announce a finalized resolution or agreement-in-principle to resolve an investigation with this office. As reflected by public disclosures, at least nine other pharmaceutical manufacturers and three dialysis service providers remain under investigation. As the list of resolutions grows longer, life sciences companies should assess, or reassess, their policies, procedures and monitoring regarding donations to copay assistance charities....

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