Bayer pays out $97.5M to settle kick-back allegations

Germany's Bayer HealthCare will pay $97.5 million to the US Department of Justice to settle an investigation into alleged kick-back payments made by its Diabetes Care division.

"We are satisfied that the issues in question have been resolved," said chairman Arthur Higgins. "We are eager to move forward, focus on our current business and ,most importantly, continue to be a valued and respected health care provider," he added. Bayer says it has decided to resolve the investigation to avoid the time, uncertainty, and expense of litigation and that funds for the settlement are covered by provisions.

The drugmaker is alleged to have paid 11 diabetic suppliers to convert their patients to Bayer products and causing them to submit "false" claims to Medicare, between 1998 and 2003. The DoJ says the allegations suggest Bayer made payments of $2.5 million to Liberty Medical Supply, disguising the pay-outs as advertising expenses, along with a further $375,000 of kick-backs made to 10 other firms.