Genzyme Puts Up $22.3M To Settle With Whistleblower

FILE PHOTO Genzyme may be based in Cambridge, but the company has more than 2,000 employees in MetroWest, including some at this building in Framingham.

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Cambridge-based Genzyme has agreed to pay $22.28 million to resolve allegations brought by former employees that the biotechnology giant marketed an inappropriate use for a surgery medication, the U.S. Department of Justice said.

The lawsuits allege that sales representatives for Genzyme, which has facilities in Northborough and Framingham, encouraged doctors to use Seprafilm in ways not approved by the U.S. Food and Drug Administration, leading to improper reimbursement claims. Seprafilm is intended to be used by surgeons while operating on patients.

“There will be consequences when medical device companies alter products to increase sales and profits without regard to patient safety, Stuart Delery, assistant attorney general for the U.S. Department of Justice’s Civil Division, said in a statement. “Federal health care participants should receive only devices that are medically reasonable and necessary.”

According to court documents, Seprafilm is intended to be used during surgery to prevent organs and muscle tissue from sticking together. However, Genzyme sales representatives were allegedly telling doctors it could be used for less invasive procedures by mixing it into a liquid substance and injecting it into the body.

One whistleblower suit was brought by two company sales representatives in 2009, while another was brought by a doctor and Genzyme expert speaker in 2011. Geznyme didn’t admit wrongdoing under the terms of the settlement.

Genzyme was purchased by French drug maker Sanofi for $20.1 billion in 2011. The company didn’t return calls for comment Tuesday.

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