Pfizer Subsidiary Pays Nearly $60 Million to Resolve Kickback Allegations Linked to Migraine Drug

Pfizer and its subsidiary Biohaven will pay $59.7 million to settle allegations involving unlawful payments to healthcare providers to boost sales of the migraine medication Nurtec ODT. The U.S. Department of Justice announced the resolution, which stems from misconduct that allegedly occurred before Pfizer acquired Biohaven.

The DOJ claims that between March 2020 and September 2022, Biohaven knowingly offered financial incentives such as speaker fees and upscale dining experiences to influence prescribers. These payments were aimed at increasing prescriptions of Nurtec ODT, which in turn triggered fraudulent claims to Medicare and other federal healthcare programs.

The government alleged that Biohaven’s strategy was to inflate market share through improper means, ultimately placing a burden on public insurance systems. Even though the alleged violations occurred prior to the acquisition, Pfizer has agreed to resolve the case on Biohaven’s behalf.

This settlement highlights the intensifying regulatory scrutiny on pharmaceutical marketing and serves as a warning that corporate acquisitions don’t erase past compliance risks. It also signals growing federal efforts to curb unethical promotional practices in the healthcare sector.