By Stephen Nakrosis 
 

Novartis AG on Wednesday said it finalized an agreement with the U.S. Attorney's Office for the Southern District of New York, the New York State Attorney General, and relator Oswald Bilotta, which will see it pay a $678 million settlement to resolve "a civil suit challenging speaker programs and other promotional events conducted from 2002 through 2011 by Novartis Pharmaceuticals Corp."

As part of the settlement, Novartis said, it "agreed to new corporate integrity obligations with the Office of Inspector General of the U.S. Department of Health & Human Services that will change how the company delivers peer-to-peer programs in the U.S."

Vas Narasimhan, the company's chief executive, said "Today's settlements are consistent with Novartis commitment to resolve and learn from legacy compliance matters."

The company said it fully provisioned for this settlement in July of last year.

Also on Thursday, Novartis said it finalized a previously disclosed agreement with the U.S. Department of Justice and the U.S. Attorney's Office for the District of Massachusetts which will see it pay $51.25 million "to resolve an investigation related to the company's support of certain independent charitable co-pay foundations from 2010 to 2014."

Under the terms of this settlement, the company said, it "agreed to additional corporate integrity obligations with OIG to further enhance its controls relating to its interactions with ICCFs."

Novartis said it had provisioned for this settlement.

 

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

July 01, 2020 19:25 ET (23:25 GMT)

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