US demands $3.35 billion in damages and civil fines from Novartis

On Monday night in Manhattan federal court, the government filed papers in which it stated that Novartis AG should pay $3.35 billion in damages and civil fines because the company has used wrong measures to strengthen its sales of two drugs covered in Medicare and Medicaid.

The government said that the company should pay that much amount under the federal False Claims Act for alleged improper reimbursements for Exjade and Myfortic. The former drug is used by patients who require blood transfusions and the latter one for patients with kidney transplants.

The government seeks up to $1.52 billion in damages and also, $1.83 billion in fines. The company's spokeswoman Julie Masow said it, "continues to dispute the allegations and is continuing to defend itself in this litigation. We look forward to a full presentation of all of the evidence during the trial".

From November 2, a jury trial will start and is expected to last many weeks. The federal government, 11 US states and David Kester, a whistleblower and former Novartis respiratory account manager acting on behalf of 17 other states have sued the company.

As per the lawsuit, Novartis has been accused of paying kickbacks to three specialty pharmacies to recommend refills of Exjade. It has also been accused of offering similar rebates to five other pharmacies to recommend Myfortic, an immunosuppressant, over rival drugs.