The drug Naloxone sits on a table during a free Opioid Overdose Prevention Training class provided by Lourdes Hospital in Binghamton, New York, U.S., April 5, 2018. Picture taken April 5, 2018. REUTERS/Andrew Kelly
(Reuters) - A Florida-based specialty pharmacy has agreed to pay $1.3 million to resolve allegations it defrauded Medicare into paying for an expensive overdose treatment sold by the drugmaker Kaleo Inc whose costs far exceeded that of other naloxone products.
Federal prosecutors in Boston in court filings on Friday said Solera Specialty Pharmacy LLC had entered into a deferred prosecution agreement eight months after Kaleo had agreed to a related $12.7 million civil settlement with the government.
Solera was charged with one count of health care fraud. Under the agreement, that charge will be dismissed in three years if the company complies with its terms, including by paying a $1.3 million civil settlement and implementing certain reforms to its business.
Anthony Mahajan, a lawyer for Solera at Frier Levitt, did not respond to a request for comment on Monday.
Kaleo's November 2021 settlement came four years after the company first faced public scrutiny for hiking the price of its overdose treatment Evzio by 550% in the midst of the deadly U.S. opioid abuse epidemic.
Prosecutors said Evzio was significantly more expensive than competing products, with a list price of $4,100 for a pack of two auto-injectors, compared to $150 for a two-pack of Narcan nasal spray...
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