Gilead HIV prescription bottles seized at Best Scripts Pharmacy.
Courtesy: Gilead Sciences
Gilead Sciences The company said it uncovered a dangerous drug counterfeiting operation in which its HIV medicines were tampered with and improperly resold before they reached patients.
The scheme allegedly took place at two New York City pharmacies and identified twice-convicted medical fraudster Peter Khaim as the mastermind, according to court documents released this month. The company calls Qaim one of the most shameless and largest manufacturers and sellers of fake Gilead drugs in the country.
Gilead is suing Khaim, as well as Queens-based pharmacies 71st RX and Best Scripts, as well as other pharmacies it claims are connected to the counterfeiting scheme. Gilead’s complaint alleges that Qaim controls both pharmacies.
“Defendants and their co-conspirators manufactured these counterfeit Gilead-branded HIV drugs and trafficked them to pharmacies and patients in at least New York and New Jersey, putting the health and safety of countless patients at risk,” the lawsuit filed by the attorneys states. said Jeffrey Porter of Patterson Belknap Webb & Tyler.
Gilead said in its complaint that counterfeiters used genuine prescription bottles but altered the actual drugs or related documentation.
“In some cases, the contents of the bottles were emptied, refilled with the wrong medication, and then resealed with materials that differed from the genuine Gilead tamper-evident seals,” the complaint states. “The conspirators then sold bottles with Counterfeit patient information documents, counterfeit bottle caps, and/or counterfeit bottles with fake pedigrees or invoices.”
Most of the Gilead HIV drugs seized in this case were Biktarvy and Descovy.
Victims included “people living with HIV who were deceived and persuaded by the defendants to give up taking their prescription medications,” as well as “patients who went to a nearby pharmacy and received a sealed, authentic-looking bottle without their knowledge. De said in the complaint, “But he received fake goods. “
Gilead lawyers and private investigators, accompanied by New York City Sheriff’s Office deputies, conducted seizures at two pharmacies and Khaim’s home in July, seizing more than $750,000 in suspected counterfeit drugs, court documents said.
Qaim’s lawyer declined to comment.
Best Scripts pharmacy discovered lighter fluid containing Gilead drug used during epileptic seizures.
Source: Gilead Litigation Exhibit
The case is the second major civil lawsuit Gilead has filed against Khaim involving fake HIV drugs in the legitimate supply chain. Gilead sued Qaim and others in 2021 and obtained an injunction prohibiting him from selling Gilead-branded products. In that case, Qaim earned more than $38 million by selling counterfeit Gilead drugs to distributors and directly to pharmacies, according to Gilead.
The latest complaint alleges that despite the injunction, Heim continued to oversee counterfeiting practices at two Queens pharmacies.
In unrelated criminal schemes, Qaim was sentenced to 96 months in prison for a health care fraud case and 15 years in prison for a separate insurance fraud case. He wore a court-ordered GPS ankle monitor while awaiting sentencing in a medical fraud case and while operating a pharmacy and selling counterfeit drugs, according to documents in the case file.
Gilead said in a statement to CNBC: “This lawsuit once again clearly demonstrates our continued commitment to putting patient safety first and protecting individuals from criminals seeking to sell counterfeit and illegal Gilead medicines. “In addition to this lawsuit, we will continue to work closely with the FDA, OIG, FBI and prosecutors to disrupt counterfeit networks, deter fraudsters and stop illegal drug distribution. “
Last year, a CNBC investigation Revealing the murky world of counterfeit drugs and how Gilead works to stop criminals from altering packaging and medications.
In many cases, counterfeiters obtained the drugs from patients and then sold them for cash, according to Gilead and law enforcement officials. The labels are usually removed with lighter fluid, and the bottles are resealed and distributed to other patients. In the latest case against Qaim, lighter fluid was found at the pharmacy during a seizure, court documents say.
