05:41 PM EDT, 04/10/2024 (MT Newswires) -- (Updates with Regeneron's comments in the fifth and sixth paragraphs.)

The US Department of Justice on Wednesday filed a complaint against Regeneron Pharmaceuticals ( REGN ) alleging that the company fraudulently manipulated Medicare reimbursement for its drug Eylea.

The complaint alleges that the company submitted "false average sales price (ASP) reports to Medicare," the Department of Justice statement said, adding that Medicare uses the average sales price to establish reimbursement rates for drugs.

The DOJ said Eylea is "a leading Medicare expense" with payments of over $25 billion from 2012 to 2023.

Eylea is used to treat eye disease wet age-related macular degeneration and other conditions.

"Regeneron believes that the allegations against us are without merit," a Regeneron spokesperson told MT Newswires. "The complaint, which follows a Civil Investigative Demand from the US Department of Justice in June 2021, and which the company previously disclosed, relates to the Company's lawful reimbursement of costs incurred by our specialty distributors."

"Regeneron has fully cooperated with the government's investigation and will vigorously defend itself in court," the Regeneron spokesperson said.

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