US Intensifies Drug Discount Debate in Latest Regeneron Lawsuit

New Justice Department allegations that Regeneron Pharmaceuticals Inc. artificially inflated Medicare reimbursement rates on a high-earning eye treatment are likely to trigger copycat complaints at other manufacturers.

Sales of the Westchester County, New York, biotechnology giant’s prized drug Eylea are now the target of three simultaneous lawsuits under the same statute. But this latest action announced by DOJ April 10, centering on Regeneron covering the costs of physician credit card processing fees, may create the most ripples.

“To the extent other pharmaceutical companies are indirectly forgiving credit card fees for physicians, those could be promising False Claims Act cases ...