What was the Copaxone kickback case?
The DOJ alleged Teva paid hundreds of millions through charitable foundations to cover Medicare copays for Copaxone while raising its price at more than 19 times the rate of inflation — resolving the case for $425 million in 2024.
Copaxone is Teva's branded multiple sclerosis drug. In 2020 the Justice Department sued Teva, alleging that from 2006 to 2017 it paid Medicare patients' copays for Copaxone through two charitable foundations and a specialty pharmacy while steadily raising the drug's price. The then US Attorney said Teva paid hundreds of millions in kickbacks while raising Copaxone's price at a rate over 19 times the rate of inflation. Teva allegedly gave the foundations more than $350 million.
In October 2024 Teva agreed to pay $425 million over six years, alongside $25 million to resolve related civil price-fixing claims, with the total set according to its ability to pay. Teva admitted no wrongdoing and maintained its donations supported MS patients' access to critical medicines.