Indian American-led Delaware-based Speciality Pharmacy Agrees to Play $20 Million to Settle Kickback Allegations

Chaitanya Gadde, an Indian American CEO of BioTek reMEDys Inc., a Delaware-based specialty pharmacy that offers drugs and infusion services, has agreed collectively to pay $20 million to resolve allegations that they violated the False Claims Act by paying kickbacks to patients and physicians to protect its revenue stream.

The government alleged that, from at least August 2015 through May 2020, BioTek, “routinely waived the copayments of Medicare and TRICARE patients to induce those patients to purchase its drugs and services.” Many of those drugs were expensive and required patients to pay large copays. The company “sought to avoid deterring patients from purchasing its drugs and services by engaging in a scheme, orchestrated and implemented by Gadde and others, to routinely waive these large copays, without regard for whether the patients were experiencing financial hardship,” the government alleged, according to the Department of Justice. 

The settlement also “resolves allegations that BioTek provided remuneration in the form of gifts, dinners and free administrative and clinical support services to physicians to induce those physicians to refer patients to the pharmacy.