The captivating Pharma Fraud blog brings us an interesting perspective into the world of drug diversion by leading Pharmaceutical companies. In a recent post, Pharma Fraud, includes an interview with a Relator in The USA et al Relator v McKesson et al case. This is the case that alleges three Big Wholesalers and Henry Schein, encouraged and engaged in the diversion into the gray market of drugs manufactured by Merck & Co., Inc. (“Merck”). It names the giant distributer, Henry Schein as a major player in purchasing diverted Merck drugs and selling them to wholesalers.
What makes this a Qui Tam case? The manufacturers are supposed to pay a rebate to Medicaid according to Federal and State Medicaid law. If they are guilty of hiding the huge discounts to commercial customers in order to avoid paying rebates on the difference between AMP (Average Manufacturer's Price)and Best Price, which Federal and State Medicaid law requires they pay, this is a violation of the False Claims Act and is a Qui Tam case.
The amended complaint was filed in Camera under seal in May, 2007 with Plaintiff's, U.S., several states including Florida and Texas. The Defendant's named in The USA et al Relator v McKesson et al include McKesson, Cardinal Health, Amerisourcebergen and Henry Schein, Inc.