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NY lawsuit accuses Novartis of health care fraud

The US government has sued Novartis Pharmaceuticals Corp, claiming it gave kickbacks to pharmacies to switch kidney transplant patients from competitors’ drugs to its own.

The civil health care fraud lawsuit in US District Court in Manhattan seeks unspecified damages and civil penalties for a scheme that the government said has been carried out since 2005.

US Attorney Preet Bharara said on Tuesday that the company used the ‘lure of kickbacks disguised as rebates’ to turn 20 or more pharmacies into a sales force for its drug, Myfortic.

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