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Healthpoint Ltd. Subject of Qui Tam Complaint; DoJ Joins Whistleblower Suit

April 3, 2011

According to DoJ, Healthpoint Ltd, a Texas-based subsidiary of DFB Pharmaceuticals Inc., “submitted false statements concerning the regulatory status of Xenaderm to the United States, thereby causing false or fraudulent prescription claims for the unapproved drug to be submitted to Medicaid and Medicare.” As early as the 1970s, the active ingredient in Xenaderm — trypsin — was determined to be ineffective and was rejected by the Food and Drug Administration.  Despite knowing that trypsin was unapproved, Healthpoint marketed Xenaderm as a debriding agent for bed sores and falsely caused federal healthcare programs such as Medicare, Medicaid, and Tricare to pay for the drug, says DoJ. Whistleblower Constance Conrad alerted the government to the alleged fraud and will be rewarded with between 15%-25% of the recovery, which may be up to three times the amount of the false claims plus interest, civil penalties, attorneys’ fees, and costs of the action under the qui tam provisions of the False Claims Act.

To report Medicare or Medicaid fraud, contact Frohsin & Barger.

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