FEDS SEEK INFO ON BRISTOL-MYERS COMPLIANCE REVIEW
Published on Fri Aug 29, 2003
Internal review covers sales, marketing and pricing practices.
As government scrutiny builds on pharma companies' sales and marketing practices, drugmakers are facing investigations from every quarter: the Department of Justice, state attorneys general, the HHS Office of Inspector General and even Congress. In the latest development, New York-based Bristol-Myers Squibb Co. says the U.S. attorney's office in Massachusetts - a particularly aggressive office when it comes to health care fraud enforcement - wants the results of an internal compliance review the company is conducting of its sales and marketing practices. In an Aug. 8 filing with the Securities and Exchange Commission, the company notes that its review is designed to assess how well its practices comport with the anti-kickback statute. The review includes such hot-button compliance issues as Medicaid best-price requirements, drug pricing and Medicaid rebates. Shortly after discussing it with the U.S. attorney's office in Massachusetts, Bristol-Myers received a subpoena relating to the review, the company says in the SEC filing. Lesson Learned: Drugmakers should expect continued aggressive scrutiny on a series of key compliance issues, including kickbacks, average wholesale price issues, Medicaid rebates and best-price requirements.