Contribute Try STAT+ Today

A unit of Sun Pharmaceuticals agreed to pay nearly $21 million to settle allegations of providing false instructions to doctors for a skin treatment and, in turn, causing federal health care programs such as Medicare to overpay for the medication.

At issue is a product called Levulan Kerastick, an ointment for treating  actinic keratoses that is used in conjunction with an illuminated blue light. Clinical trials indicated the treatment required 14 to 18 hours of incubation. But Dusa Pharmaceuticals, which Sun acquired in 2012, encouraged doctors to use incubation periods of just one to three hours, resulting in far lower rates for resolving scaly skin patches, according to the Department of Justice.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!

GET STARTED

What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.