Galderma At it Again? Continued Scrutiny by Manufacturers of Copay Coupon Programs

In the past week alone, Frier Levitt has seen a sudden increase in actions by pharmaceutical manufacturers against pharmacies related to the use of certain patient savings programs, such as copay coupon programs.  These programs are designed to reduce patient out-of-pockets for certain branded medications while making it easier for pharmacies to dispense the manufacturer’s products. In particular, Frier Levitt has seen a familiar company, Galderma Laboratories, L.P. (“Galderma”), begin sending letters to pharmacies that utilized Galderma’s patient savings program known as the “CareConnect Program,” demanding repayment of monies it believes was improperly paid to the pharmacies. Typically written on letterhead from outside counsel, the letters assert that Galderma has reviewed purchases made by pharmacies for its products, and compared them with redemptions to the CareConnect Program. Where Galderma has identified a shortfall, it has demanded a full refund of the allegedly improper submissions, along with attorney fees.

Galderma has been known to take action against pharmacies for the usage of its CareConnect Program in the past. In February 2020, Galderma filed a number of nearly identical lawsuits against pharmacies over their uses of the CareConnect Program, alleging claims for breach of contract as well as fraud. Galderma filed more than 25 cases against pharmacies and individual pharmacists and continued “audits” of pharmacies even beyond that.

In this latest round of activity, it appears that Galderma is once again focused on examining purchases by pharmacies compared to claims submitted under the CareConnect Program. In these instances, there could be many reasons that it might appear to Galderma that there is a shortfall in the pharmacies’ purchases, such as pharmacy-to-pharmacy transfers, bulk purchases from a pharmacy going out of business, or purchases from secondary suppliers.

How Frier Levitt Can Help

Because the letters provide a very short time to respond, it is important to act fast. Frier Levitt has represented dozens of pharmacies in matters involving Galderma. Our attorneys have assisted these pharmacies in defending litigations and resolving matters and have a keen understanding of the CareConnect Program and industry standards for claims submission.  If your pharmacy has received a notice from Galderma or its attorneys, contact us to speak with a member of our team.