By Mitchell Young
NEW HAVEN: Alexion [Nasdaq: ALXN] stock is battling off another a report of an investigation. The company has reported that it is under investigation by the U.S. Department of Health and Human Services’ Office of Inspector General. The HSS is looking at allegations relating to Alexion’s support of, for charities that support Medicare patients by the U.S. Attorney’s Office in Massachusetts.
“We are aware that the U.S. Department of Health and Human Services Office of Inspector General is working on this inquiry with the U.S. Attorneys’ Office and the Department of Justice,” Alexion said July 6 th in a statement.
Alexion had previously reported in January that it had been subpoenaed by the U.S. Attorney requesting documents about the company’s support for charities that give financial assistance to Medicare patients, Alexion has said it is cooperating with the investigation and that other companies were also included in the probe.
Also on July 6 th in response to a to a Freedom of Information Act request from Bloomberg News, the HHS confirmed that they were participating in the investigation but did not provide any further information.
The company’s stock declined 3% on the news after a run up from $96.75 to as much as $129 in the past few weeks, some of those loses have already been retraced.
Thw Good News: Alexion reported on July 6 that it has reached a national funding agreement with the National Institute for Health and Care Excellence (NICE) and the National Health Service (NHS) England based on a Managed Access Agreement (MAA), which provides access to its drug Strensiq.
Priced reportedly at more than $500,000 the UK had rejected certain uses of the drug in February which are now resolved with this agreement.