I guess nobody much cared about the food that night.
According to a whistleblower lawsuit filed by a former manager at pharmaceutical
	 manufacturer Cephalon, at a 2008 sales launch meeting the company passed
	 out cash – literally. The suit, which is filed under the False Claims
	 Act (“FCA”), says that the meeting was designed to encourage
	 employees to sell two drugs – Treanda and Fentora. To make the point
	 that selling prescription drug Treanda would be very profitable for the
	 sales reps, the company hired waiters to pass trays of $50 bills during
	 dinner. A Cephalon VP told the sales representatives to grab handfuls
	 of the bills as the waiters passed by, explaining that they could earn
	 huge bonuses by selling Treanda – which would be just like “taking
	 free money.”
	According to a pharmalot article,
	How to Motivate Off-Label Promotion? Give
		
 Reps Trays of $50 Bills, the FCA lawsuit claims that Cephalon projected $500 million in sales
	 for Treanda in the next year — a figure that would be impossible
	unless the drug was sold for off-label uses.
	While $50 bills certainly beat rubber chicken or meatballs-on-a-stick,
	 the VP’s reported comment about “free money” beg the
	 question. Free – to whom? Prescription drugs are not free to the
	 people who take the drugs, or to their insurance companies — and
	 the pharmaceuticals certainly are not free to U.S. taxpayers. In 2010,
	Medicare spent 12% of its entire budget on prescription drugs under the Part D program – a whopping $62.0
	 billion in all.
I would be willing to bet that the VP submitted an expense claim for those
	 $50 bills that the waiters offered to the sales representatives. After
	 all, those bills weren’t free to him – just like drugs are
	 not free to those who ultimately pay for them.
	Spending money on necessary pharmaceutical drugs is one thing. A
	Congressional Budget Office Report argues that spending on prescription drugs actually saves money because
	 it decreases spending in other medical areas. But nobody can justify spending
	 money on prescription drugs that are not necessary or don’t work.
	 Those drugs can’t help the patients, and unlike the platters of
	 $50 bills, they certainly are not free.
Treanda is approved by the FDA to treat chronic lymphocytic leukemia. According
	 to the lawsuit, the company decided it would profit by marketing Treanda
	 for indolent non-Hodgkin’s lymphoma, even though the medication
	 was only approved as a second or third-line treatment for the disease.
	 To push the drug as a frontline treatment, the company relied on a German
	 study by a consultant hired by Cephalon. The False Claims Act lawsuit
	 says that the company executives believed that there were significant
	 problems with the German study, but decided to hide the problems and push
	 the drug, anyway.
The FCA lawsuit also alleges that the company encouraged offlabel marketing
	 of a drug called Fentosa, which is a painkiller.
Cephalon paid $425 million to resolve allegations of Medicaid fraud in
	 2008. The claims had been made in another whistleblower lawsuit filed
	 by a Philadelphia sales rep. The Philly sales rep alleged that the company
	 was pushing off-label marketing for three other drugs: Actiq, Gabitril
	 and Provigil. The Government resolved those FCA claims for $375 million
	 to address the overpayments by Medicaid, plus a $50 million payment for
	 a corporate criminal plea.
Teva Pharmaceutical now owns drug maker Cephalon.