Eli Lilly, Astellas Pharma Must Face Medicaid Fraud Claims

Eli Lilly and Co. and Astellas Pharma US, Inc. must face a whistleblower’s allegations they violated the False Claims Act by defrauding the Medicaid Drug Rebate Program.

The complaint alleges enough details about the purported schemes to survive dismissal, the U.S. District Court for the Northern District of Illinois said April 3.

Ronald J. Streck, a former executive of a network of drug regional wholesalers, filed the FCA whistleblower suit on behalf of the U.S. and 26 states.

The Medicaid Drug Rebate Program is designed to offset the cost of prescription drugs provided to Medicaid patients. Participating manufacturers must rebate ...