The U.S. Department of Justice announced that it is has launched a probe into a new psychosis drug that is marketed for the treatment of Parkinson’s disease. The investigation is targeting the sales and marketing techniques used by the drug manufacturer.
Nuplazid’s Quick-to-Market History.
The drug is called Nuplazid, and it is manufactured by Acadia Pharmaceuticals, who disclosed the DOJ investigation in its recent filing with the U.S. Securities and Exchange Commission. It is intended to combat the debilitating delusions and hallucinations that Parkinson’s patients suffer.
The U.S. Food and Drug Administration approved Nuplazid back in 2016. Citing the desperate need to treat those patients suffering from Parkinson’s, the FDA approved the drug despite evidence that the risks of the antipsychotic drug might outweigh its risks. At the time, the FDA called it a “breakthrough” drug, a designation that indicates that the agency felt it demonstrated substantial improvement in patients in comparison to other treatments and drugs already available on the market.
But because of a significant number of deaths of patients taking the drug, medical researchers and physicians raised alarm bells about the safety of Nuplazid. Some health care professionals asserted that the drug was approved too quickly, and without enough evidence to determine its effect on patient health and safety.
Thereafter, the FDA performed a new safety evaluation into whether Nuplazid was causing higher risk of mortality rates in Parkinson’s patients. That evaluation, which completed in September 2018, concluded that there were no new or unexpected additional risks that were inconsistent with the “black box” warning label—the FDA’s most severe warning level—that was already required to be included with the drug’s prescription.
The DOJ’S Investigation of Fraud.
Acadia admitted in its SEC filings that it received a “Civil Investigative Demand,” a type subpoena, for documents from the DOJ in September 2018, which requested documents and information from the pharmaceutical company. The DOJ’s subpoena cited the False Claims Act, a federal law that the government uses to prosecute and recover fraudulent gains.
The DOJ did not issue a comment, so the focus and the basis of the DOJ’s investigation remain unknown. However, False Claims Act experts and attorneys specializing in health care fraud say that most false claims investigations like this one start from a whistleblower complaint. In the health care industry, False Claims Act cases can involve pharmaceutical companies offering illegal “kickbacks” to doctors—or when the drug manufacturer unlawfully pays doctors extra money in exchange for prescribing the drug. Some False Claims Act cases end with criminal and civil penalties, as well as settlements for millions of dollars.
Illegal Pay-to-Prescribe?
Investigations into public government data that track prescriptions shows a connection between doctors who were paid promotional fees by Acadia and those doctors who prescribed Nuplazid the most. Although it is not illegal for pharmaceutical companies to pay doctors to promote a drug to colleagues and other medical health professionals, it is illegal to pay doctors to prescribe it to their patients. This information, collected and analyzed from public government Medicare data, shows that there may in fact be a connection between the payments to doctors and the actual patient prescriptions. According to CNN, this data shows that more than 10% of all Medicare-based claims for Nuplazid (or more than $2.1 million) came from the physicians who were on the bankroll of Acadia.
In total, Acadia spent more than $8 million in payments to doctors in its marketing support of its sole drug, Nuplazid. Twenty-six individual doctors received payments—which include compensation for food, drink, travel and financial compensation for marketing efforts—in six-figure sums.
Acadia responded that its payment and marketing interactions with physicians are all for legitimate and legal purposes. In response to the large sums paid to doctors for marketing the Nuplazid drug, Acadia asserted that most of the money was for speaking events to spread awareness about the drug and its benefits in treating Parkinson’s.
Acadia also says that it is cooperating completely with the DOJ’s request.
In the meantime, Nuplazid remains the only drug on the market that is FDA-approved to treat Parkinson’s Disease Psychosis.