HIV drug kickbacks: Gilead Sciences to pay USD 202 million to settle lawsuit

Written by Ruchika Sharma Published On 2025-05-01T15:15:51+05:30 | Updated On 1 May 2025 3:15 PM IST

HIV drug kickbacks: Gilead Sciences to pay USD 202 million to settle lawsuit

New York: Gilead Sciences has agreed to pay USD 202 million to settle a whistleblower lawsuit that accused the company of engaging in civil fraud by providing illegal kickbacks to doctors in exchange for prescribing its HIV medications.

The settlement, announced by U.S. Attorney Jay Clayton in Manhattan, resolved allegations that Gilead violated the federal False Claims Act by defrauding Medicare, Medicaid, and other programs into paying for drugs prescribed by doctors who spoke at and attended Gilead's promotional speaker programs.

As per Reuters, investigators said that between 2011 and 2017, Gilead spent over $23.7 million on speaker honoraria, luxury meals, and travel to attractive destinations like Hawaii and New Orleans to reward healthcare providers.

According to settlement papers, some kickback recipients repeatedly attended programs on the same topic, including a group of 10 Manhattan doctors who spoke at or attended together approximately 384 dinners.

The HIV drugs included Biktarvy, Complera, Descovy, Genvoya, Odefsey and Stribild.

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"With this settlement, Gilead has taken responsibility for its conduct," Clayton said in a statement. "The message is clear, companies that illegally drain taxpayer dollars from federal healthcare programs will be held accountable."

Gilead said it settled to avoid the cost and distraction of potential litigation. The Foster City, California-based company had set aside money for the settlement in last year's fourth quarter.

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The False Claims Act lets whistleblowers sue on behalf of governments and share in recoveries.

The Gilead case was originally filed in 2016 by Paul Bellman, a doctor who treats patients diagnosed with HIV/AIDS.

Gilead's HIV drug sales totaled $19.61 billion in 2024, up 8% from a year earlier.

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Source : with inputs

Ruchika Sharma

Ruchika Sharma joined Medical Dialogue as an Correspondent for the Business Section in 2019. She covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She has completed her B.Com from Delhi University and then pursued postgraduation in M.Com. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751