Amgen sued over Anemia drug

The lawsuit was filed in U.S. District Court in New York and announced by New York Attorney General Andrew Cuomo.

The suit asserts that Amgen was involved with two other companies-- International Nephrology Network (INN), a specialty group-purchasing organization, and ASD Healthcare, a wholesaler of pharmaceuticals. Both companies are based in Frisko, Texas and are subsidiaries of AmerisourceBergen Corp. of Chesterbrook.

The states involved in the lawsuit are: New York, the District of Columbia, California, Delaware, Florida, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Nevada, New Hampshire, Tennessee, and Virginia.

Wrong prescription
Amgen is accused of paying INN to promote its product Aranesp. On the other hand, INN is accused of conspiring with Amgen and its distributor, ASD Healthcare, to offer illegal incentives to its customers to increase the sales of Aranesp.

Aranesp, approved in the year 2001, is used by cancer and kidney disease patients to help ease anemia. Sales have been sluggish over the years, especially after studies revealed that Aranesp increases the risk for heart attacks and death, if overused.

Cuomo said that Amgen encouraged medical suppliers to bill third party payers for Aranesp, which was provided to them at no cost. "In an egregious violation of the law, Amgen allegedly bribed medical providers and left taxpayers footing the bill for free drug samples," Cuomo said.

"Drugs should be prescribed to patients on the basis of need, effectiveness, and safety, not on a corporate giant's promise of an all-expense paid vacation," Cuomo said in a statement.

Amgen’s response
In response to the lawsuit, the company said, “We believe that the allegations are without merit, and we look forward to the opportunity to examine these matters with the states before the Court.”

“Amgen has a solid compliance program called ‘Do the Right Thing,’ and we expect that all of our employees follow it at all times,” said the Californi-based company.

Amgen shares closed at $53.62 on the NASDAQ, down by 1 percent.