Texas Attorney General Ken Paxton (R) has filed a lawsuit against Sanofi (SNY), accusing the French pharma giant of illegally running a kickback scheme aimed at encouraging doctors to prescribe its medicines.
By providing healthcare providers with nurse services and insurance support services as part of its “Free Nurse Program” and “Support Services Program,” the company influenced the kind of drugs Texans received, according to the lawsuit.
With some of Sanofi’s (SNY) drugs used to treat chronic ailments, the scheme ensured that Sanofi (SNY) received years-long sources of revenue even though the drugs were not the most appropriate course of therapy for the patients.
The kickbacks violated the Texas Health Care Program Fraud Prevention Act (“THFPA”), Paxton said in a statement, adding that he is seeking monetary relief of over $1M, including civil penalties, as well as an injunction to halt any further illegal acts.
The lawsuit marked Paxton’s latest attempt to challenge Big Pharma. In August, he sued Eli Lilly (LLY) over allegations that the Indiana-based pharma giant bribed medical providers to boost prescriptions for its weight loss therapy Zepbound and other drugs.