November 7, 2019
Compound drug ingredient supplier Fagron Holding USA LLC
has agreed to pay over $22 million
to resolve two qui tam
suits involving three of Fagron’s wholly-owned subsidiaries. According to whistleblowers, Freedom Pharmaceuticals Inc.
grossly inflated the price of active pharmaceutical ingredients used in compound prescriptions, causing pharmacy customers to submit false claims to TRICARE. Other allegations involved subsidiaries Pharmacy Services Inc.
and B&B Pharmaceuticals Inc.
, which were accused of submitting false claims to federal healthcare programs, manipulating prescription drug pricing, paying kickbacks to physicians, and illegally waiving patient copays. DOJ