After six years of jousting, Novartis (NVS) appears close to settling a lawsuit in which the federal government alleged the drug maker used kickbacks to doctors — including fishing trips and lavish meals — in order to boost prescriptions of several medicines, according to sources familiar with the matter.
There is no guarantee that a deal will occur. A trial date was set for this coming Monday in a Lower Manhattan courtroom, although a pretrial conference that was scheduled for last Friday was adjourned the previous day, according to court documents. Details of a settlement could not be learned, but sources indicate the company may agree to pay close to $1 billion to resolve the case. A spokeswoman for the U.S. Attorney in New York declined to comment, as did a Novartis spokesman.
A settlement would give the drug maker a much-needed opportunity to dispense with a string of well-publicized cases involving bribes paid to doctors or public health employees in the U.S. and elsewhere that have tarnished its reputation. The issue has vexed Novartis chief executive Vas Narasimhan, who has made restoring the company’s corporate image one of his priorities since being promoted early last year.
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