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Corporate Integrity Agreement to cover Bayer HealthCare Diabetes Care, Bayer HealthCare Pharmaceuticals, Medrad (including Possis), Intendis and Viterion TeleHealthcare
Tarrytown, NY (November 25, 2008) - Bayer HealthCare LLC confirmed today that
it has reached a settlement with the United States Department of Justice (DOJ)
related to an investigation into the Diabetes Care division's historical
marketing programs with certain mail order customers that took place during the
period between 1998 and 2003. Bayer has cooperated fully with the DOJ's civil
investigation that commenced in 2003, without acknowledging liability. Under
the terms of the agreement, Bayer HealthCare LLC will pay US-Dollar 97.5
million to the government, and will enter into a Corporate Integrity Agreement
(CIA) with the Office of Inspector General (OIG) for the Department of Health
and Human Services. The BHC divisions covered by the CIA are those that sell
products to Federal government entities (such as the VA) and /or sell products
for which claims are submitted for reimbursement under Federal healthcare
programs: Bayer HealthCare Diabetes Care, Bayer HealthCare Pharmaceuticals,
Medrad (including Possis), Intendis and Viterion TeleHealthcare.
As is common when settling a matter such as this, Bayer has decided to resolve
this investigation to avoid the time, uncertainty, and expense of litigation.
Bayer noted that funds for the settlement are covered by provisions.
The compliance processes have undergone continuous improvement in all areas of
the company in the past years. In addition, employees receive regular training
in order to promote understanding and compliance. As required by the CIA Bayer
HealthCare will review and enhance these compliance programs and employee
training.
Commenting on today's announcement, Arthur Higgins, Chairman of the Board of
Management, Bayer HealthCare said, "We are satisfied that the issues in
question in Bayer HealthCare Diabetes Care have been resolved. The last several
years have been a period of continuing positive change and growth for our
company," he continued, "and we are eager to move forward, focus on our current
business and most importantly, continue to be a valued and respected Health
Care provider."
