Sanofi Sued by Texas Attorney General Over Alleged Kickback Scheme

Texas Attorney General Ken Paxton has filed a lawsuit against pharmaceutical giant Sanofi, accusing the company of illegally incentivizing healthcare providers to prescribe its medications over competing alternatives. The lawsuit alleges that Sanofi provided kickbacks to doctors in the form of free networks of nurses and insurance support services.

Details of the Lawsuit

According to the lawsuit, Sanofi created service-based programs for healthcare professionals that functioned as bribes, violating the Texas Health Care Program Fraud Prevention Act. These programs were allegedly designed to influence prescribing decisions, potentially impacting fair competition and patient care within Texas healthcare programs. The state is seeking more than $1 million in monetary relief, including civil penalties, and a court injunction to prevent further alleged unlawful conduct .

Sanofi’s Response

Sanofi strongly denies the allegations, asserting that its services are fully compliant with both federal and state regulations. The company maintains that the programs are intended to support patient care and improve health outcomes, not to influence physicians’ prescribing behavior. Sanofi stated it will vigorously defend itself in court .

Previous Legal Actions Against Sanofi

This is not the first time Attorney General Paxton has taken legal action against Sanofi. Previously, Texas sued Sanofi and Bristol-Myers Squibb, alleging they failed to disclose that their blood thinner Plavix was less effective for certain patients. Last year, the state also filed a lawsuit against Eli Lilly, accusing the drugmaker of bribing healthcare providers to prescribe medications like Mounjaro and Zepbound .

Broader Scrutiny of Pharmaceutical Practices

The lawsuit highlights Texas’ ongoing scrutiny of pharmaceutical industry practices, particularly concerning healthcare fraud, drug marketing tactics, and compliance with state healthcare laws .

Alleged Kickback Details

The lawsuit claims Sanofi provided a free network of nurses and insurance support services to doctors. By doing so, the drugmaker allegedly helped manage key aspects of patient care that a physician would otherwise have to handle or pay staff to perform. This reduction in workload is described as a “powerful and improper inducement” to prescribe Sanofi drugs .

The alleged scheme potentially created years of revenue for Sanofi, even if its medicines were not the best option for patients, particularly for chronic illnesses like diabetes, multiple sclerosis, hemophilia, and autoimmune disorders .