Pharmaceutical giant Pfizer (PFE) has agreed to pay a $59.7 million fine to resolve charges that it paid kickbacks to doctors so they would prescribe the migraine drug Nurtec ODT.
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The U.S. Department of Justice said that from March 1, 2020 to Sept. 30, 2022 a subsidiary of Pfizer violated the federal False Claims Act by providing “honorariums” and meals at high-end restaurants to doctors to persuade them to prescribe Nurtec.
According to the government, some speaker programs were attended multiple times by the same doctors, resulting in no educational benefits, or attended by doctors’ spouses, family members, and colleagues who had no reason to be there.
Influencing Doctors
“Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said Trini Ross, U.S. Attorney for the Western District of New York that helped bring the lawsuit against Pfizer.
Pfizer did not admit wrongdoing in agreeing to pay the fine and settle the case. “We are pleased to put this legacy matter behind us, so that we can continue to focus on the needs of patients,” said the New York-based drug maker in a written statement.
PFE stock has declined about 1% over the last 12 months.
Is PFE Stock a Buy?
The stock of Pfizer has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on seven Buy, 10 Hold, and one Sell recommendations issued in the last three months. The average PFE price target of $30.50 implies 16.90% upside from current levels.
