Gilead Sciences has agreed to pay $202 million to resolve a lawsuit concerning accusations of providing kickbacks to doctors for promoting its HIV medications. The U.S. Attorney's Office in Manhattan revealed that from 2011 to 2017, Gilead violated federal laws by offering $23.7 million in incentives such as speaker fees, lavish meals, and trips, to encourage doctors to prescribe drugs like Biktarvy and Stribild. These actions allegedly led to fraudulent claims to Medicare and Medicaid. Gilead mentioned the settlement as a means to avoid further litigation costs, with reserved funds already in place.
CVS Health has revised its profit forecast for 2025 upwards, after rebounding from significant financial setbacks. The updated adjusted profit forecast now stands at $6.00–$6.20 per share, up from $5.75–$6.00, sending its stock up by 8.5% in premarket trading. Previously, CVS shares fell over 40% due to underperformance in specific segments. Additionally, the company reported a first-quarter adjusted profit of $2.25 per share, exceeding the expected $1.70. Glenview Capital Management, an activist hedge fund, has also secured four new board seats, expanding the CVS board to 16 members as part of an effort to stabilize leadership and finances.
Sanofi is planning to modify its discount policy under the 340B program, targeting U.S. hospitals that care for low-income and uninsured patients. The change, set for implementation early next year, will mean hospitals must submit pharmacy and medical claims to access discounts. This adjustment in policy comes amid lawsuits from other pharmaceutical companies, such as Eli Lilly and Johnson & Johnson, challenging similar changes related to the 340B program. These strategic shifts from Gilead, CVS, and Sanofi highlight significant moves in the healthcare sector, impacting how drugs are marketed, profits are forecasted, and discounts are managed.