Indian-origin CEO of speciality pharma firm agrees to pay USD 20 million to settle kickback allegations

Updated: Oct 4 2023 11:44AM

New York, Oct 4 (PTI) A speciality pharmacy company in the US and its Indian-origin chief executive officer have agreed collectively to pay USD 20 million to resolve allegations that they paid kickbacks to patients and physicians to protect its revenue stream, the justice department said.

“BioTek allegedly provided improper physician inducements and covered up kickbacks for patient referrals by waiving co-pays,” said US Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania.

"BioTek’s alleged scheme, orchestrated and implemented by Chaitanya Gadde, Dr David Tabby, and others, to routinely waive these copays -- without regard for whether the patients were experiencing financial hardship -- ensured a steady revenue stream for BioTek and undermined patient care to citizens of this District," Romero said in a statement.