For Amgen, The Bad News Keeps On Coming

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A company that runs dialysis centers reveals that federal investigators wants records for claims submitted for Amgen’s Epogen anemia drugs. In a statement, DaVita the Houston branch of the Office of Inspector General of the Department of Health and Human Services is seeking claims information submitted to Medicare. DaVita is also talking to the US Attorney in Texas about a civil inquiry related to Epogen claims

This may cost Amgen.

Not long ago, Congress held a hearing to examine whether Medicare payments encourage excessive use of the drug, and several studies have revealed a heightened mortality risk linked to drugs similar to Epogen, Reuters reports. The Medicare program pays for about 90 percent of all dialysis treatment in the U.S. and spent $2 billion to treat the disease in 2005, according to the Government Accountability Office.

“Our primary concern…is that the increased focus on Epogen may cause managed care companies to examine the Epogen issue,” Gary Lieberman, an analyst with Stanford Group Company, said in an investor note, Reuters reported.

That would mean less reimbursement. With this kind of pressure, it’s no wonder that Amgen ceo Kevin Shearer tried to avoid telling anyone about troubling study results for Aranesp. If this keeps up, he may have nothing to peddle to doctors.

[tags]Amgen, Epogen, Medicare[/tags]

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