Last Updated Sep 22, 2010 6:29 PM EDT
If there were any justice, Omnicare CEO Joel Gemunder would be squirming under the bright lights of 60 Minutes' cameras, trying to explain the company's various drug price schemes. On his watch, Omnicare has paid out $168.5 million in legal settlements for various kickback schemes it was involved with. Among them:
- A settlement with the federal government for $98 million. On that case, Omnicare was accused of paying $50 million to acquire a business worth no more than $5 million because the $50 million was essentially a kickback to steer pharmacy contracts to Omnicare.
- Omnicare paid $49.5 million to settle charges it switched patients' dosing regimens in order to boost prices and rip off government reimbursers.
- Walgreens (WAG) did the same thing, and settled those allegations for $35 million.
- In the process of executing these schemes, Omnicare also allegedly took kickbacks from Abbott Labs (ABT), Johnson & Johnson (JNJ), AstraZeneca (AZN), Barr Pharmaceuticals (now Teva), Bayer (BAY), Eli Lilly (LLY), GlaxoSmithKline (GSK), Roche (RHHBY), Merck (MRK), Novartis (NVS), Novo Nordisk and Pfizer (PFE) to place their drugs in favorable positions on Omnicare's prescribing lists, according to this lawsuit.
- Johnson & Johnson allegedly added $180 million to its drug sales this way, and the scheme became part of its business model (although some J&J execs expressed ethical doubts about what they were doing).
- One patient under Omnicare's care -- remember, these are very old, sick and vulnerable patients living in care -- was cycled through 67 different drugs to help boost sales.
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