*
Judge said no evidence to support claims of kickbacks on
Harvoni, Sovaldi
*
Whistleblower will appeal, his lawyers say
*
Gilead settled claims of kickbacks on HIV drugs earlier
this
year
By Diana Novak Jones
Sept 12 (Reuters) - A federal judge in Pennsylvania
rejected a former Gilead Sciences sales representative's claims
that the company paid kickbacks to doctors and patients to boost
prescriptions of its hepatitis C drugs Sovaldi and Harvoni.
In a ruling on Thursday, U.S. District Judge Cynthia Rufe in
Philadelphia sided with Gilead in the whistleblower lawsuit
brought by its former employee Toby Travis, finding that Travis
hadn't proven his claims that Gilead used speaker programs and
charitable donations to hide payments to doctors and patients
meant to induce them to write and fill prescriptions for the
drugs.
She also rejected his argument that Gilead's April agreement
to pay $202 million to settle a whistleblower lawsuit accusing
it of paying kickbacks to doctors who agreed to prescribe its
HIV drugs could bolster his claims, saying Gilead's admissions
in that case didn't apply to its actions with Sovaldi and
Harvoni.
James Miller, an attorney for Travis, said they plan to
appeal the ruling and expect it to be reversed.
A spokesperson for Gilead said the company's speaker
programs serve to educate healthcare professionals about the
medicines, and the donations to charitable foundations help
patients access treatments they need.
Travis, who was a sales representative for Gilead's
hepatitis C drugs between 2013 and 2014, filed his whistleblower
lawsuit in 2017. He accused the company of violating the
anti-kickback statute and the False Claims Act, saying that
prescriptions submitted to Medicare for reimbursement as a
result of the kickbacks constituted fraud.
He claimed the company was using a sham speaker program,
which hired healthcare providers to give presentations about its
drugs, as a way to push doctors to write more prescriptions for
its hepatitis C drugs and reward high prescribers. He also
accused Gilead of using donations to a program meant to help
low-income patients afford co-payments for drugs to induce those
patients to use Harvoni and Sovaldi specifically.
In 2019, the U.S. declined to intervene in the action.
Gilead urged Rufe to throw out Travis' claims, claiming he
had no evidence to support them. The company also asked Rufe to
sanction Travis, accusing him of knowingly trying to defraud the
court by pursuing baseless claims.
In her ruling on Thursday, Rufe declined to sanction Travis
but agreed that despite years of discovery, his evidence was
"flimsy." There was no evidence that Gilead was hiring specific
doctors based on their prescription numbers, she said, and the
donations Gilead made to the charitable foundation were far
larger than what the foundation spent on the company's hepatitis
C drugs.
The case is United States v. Gilead Sciences Inc ( GILD ), U.S.
District Court for the Eastern District of Pennsylvania, No.
2:17-cv-01183.
For Travis: James Shah, Natalie Finkelman, Bruce Parke, Alec
Berin, James Miller and Nathan Zipperian of Miller Shah; David
Caputo and John Crutchlow of Youman & Caputo; and John Gross of
the Weiser Law Firm
For Gilead: Molly Flynn of Barnes & Thornburg; Devora Allon,
Jay Lefkowitz, Kevin Neylan and Kevin Jonke of Kirkland & Ellis;
and Will Sears of Quinn Emanuel Urquhart & Sullivan
(Reporting by Diana Novak Jones in Chicago)