Jazz Pharmaceuticals will pay $57 million as part of a tentative deal with the U.S. Department of Labor to settle an investigation into the drugmaker's donations to patient assistance charities, reports Bloomberg.
Here are three things to know.
1. Jazz, which received numerous subpoenas from the DOJ over its charitable donations, referenced the deal in a May 8 securities filing. The drugmaker said it reached an agreement in principle with the DOJ in April for a civil settlement in which it will pay $57 million.
"We cannot provide assurances that our efforts to reach a final settlement with the DOJ will be successful," Jazz said in the filing cited by Bloomberg. "Any such settlement could also involve entry into a corporate integrity agreement, which would impose costs and burdens on the operation of our business."
2. While drugmakers can offer direct financial assistance to privately insured patients through drug coupons or other means, they may not do so for Medicare patients, since the government considers this action a kickback that may direct patients to costlier drugs. Drugmakers can still donate money to charities that help Medicare patients pay for their drugs, but companies cannot exert influence over these charities' operations.
3. A Jazz spokesperson told Bloomberg the company was "pleased" to reach a tentative agreement with the DOJ and implemented a comprehensive program to ensure compliance with federal rules.