Danish drugmaker Lundbeck agreed to settle a U.S. Justice Department investigation into its support of charities that help Medicare patients cover drug expenses for $52.6 million, reports Reuters.
Here are four things to know:
1. Lundbeck, an affiliate of H. Lundbeck A/S with about 900 U.S. employees, has global headquarters in Copenhagen, Denmark, and U.S. headquarters in Deerfield, Ill. It develops and distributes drugs for depression, schizophrenia, epilepsy and other conditions.
2. The drugmaker said it would not admit wrongdoing as part of the settlement, and the settlement could be negotiated further, according to the report.
3. The investigation centered on the drugmaker's support of charities that help cover drug costs for Medicare patients. According to the report, drug companies are banned from subsidizing copayments for Medicare patients, but they are allowed to give money to independent nonprofits providing copay assistance.
4. Lundbeck is not the only drugmaker the U.S. has investigated on related matters. The U.S. Attorney's Office in Massachusetts has helmed an industrywide investigation, which most recently resulted in a settlement involving Pfizer, reports Reuters.
Read the full report here.
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