Two former Amgen sales reps are suing the company claiming
the biotech firm pushed its sales force to search doctor's medical records for
potential patients in an effort to boost sales of psoriasis treatment Enbrel.
The reps are both seeking lost pay, punitive damages and
compensation totaling over $15 million. They allege they refused to follow
orders of their superiors that, they said, violated federal patient privacy
laws under the Health Insurance Portability and Accountability Act (HIPAA).
In addition, the two sales reps said they were encouraged by
their higher-ups to get insurance companies to approve reimbursement for Enbrel
for patients with mild psoriasis, which can cost $20,000 to $50,000 per year,
depending on severity of the condition.
Amgen said in a statement that the company does not comment
on pending litigation.
“Our sales representatives follow compliance guidelines with
absolute consistency,” an Amgen spokesman said in published reports.
HIPAA contains tough penalties for the
disclosure of patient health information which include up to 10 years in jail
and a $250,000 fine if the information is transferred or used for commercial
advantage.