Gilead Sciences has agreed to pay $45 million to Texas to resolve allegations that it used improper incentives to influence prescriptions covered by the state’s Medicaid program, ending a lawsuit filed by Texas Attorney General Ken Paxton in October 2023.
The state alleged that Gilead used unlawful marketing tactics to persuade medical providers to prescribe its drugs over competing treatments. Texas accused the company of offering illegal incentives to providers, including “free nurses” and reimbursement assistance services.
Many of the resulting prescriptions were covered by Medicaid, generating millions of dollars in claims to the Texas program that the state alleged were tainted by Gilead’s inducements. Texas argued that the practices violated the Texas Health Care Program Fraud Prevention Act (THFPA).
Paxton frames settlement as warning
“Doctors ought to prescribe medication in accordance with what is in the best interest of the patient,” Paxton said. “When Big Pharma attempts to bribe providers by offering kickbacks, the integrity of our healthcare system is jeopardized.”
He added that Gilead will repay $45 million to Texas and said the settlement should serve as a warning to other pharmaceutical companies.
Gilead denies allegations
Gilead denies the allegations and says it settled to avoid a long and costly legal fight.
The $45 million includes the state’s attorneys’ fees, costs and expenses, along with part of the whistleblower’s legal costs, according to the agreement.
Paxton previously secured a settlement with AstraZeneca over a similar alleged kickback scheme, and his office has also taken legal action against Eli Lilly and Sanofi-Aventis.
