Zinger Key Points
- The lawsuit two pharmacies—71st RX and Best Scripts, based in Queens.
- The company conducted seizures in July, with more than $750,000 worth of suspected counterfeit medications confiscated.
Gilead Sciences GILD has reportedly uncovered a significant drug-counterfeiting operation involving its HIV medications, which were tampered with and resold before reaching patients.
The scheme, allegedly orchestrated by Peter Khaim, a twice-convicted medical fraudster, was run from two pharmacies in New York City. Khaim, described by Gilead as a major figure in counterfeiting, faces a new lawsuit filed this month by Gilead.
The lawsuit targets Khaim and two pharmacies—71st RX and Best Scripts, based in Queens.
Also Read: FDA Approves Gilead’s Seladelpar For Inflammatory Liver Disease, Acquired Via $4B CymaBay Deal.
In 2021, Gilead Sciences warned that its original HIV treatments, Biktarvy and Descovy, had been replaced by fake versions at some pharmacies.
Gilead’s complaint alleges that Khaim controlled these pharmacies and used them to manufacture and distribute counterfeit versions of its HIV medications, including Biktarvy and Descovy.
The CNBC report added that the counterfeit drugs were sold with fraudulent patient information, caps, and documentation, potentially compromising patient health and safety.
Gilead’s complaint reveals that the counterfeiters utilized genuine prescription bottles, refilling them with incorrect medication and resealing them with non-authentic materials.
The company conducted seizures in July, with more than $750,000 worth of suspected counterfeit medications confiscated.
This case marks Gilead’s second major legal action against Khaim; a previous 2021 lawsuit resulted in an injunction prohibiting him from selling Gilead-branded products. Despite this, Khaim allegedly continued his operations.
The case reflects broader challenges in combating pharmaceutical fraud, as highlighted by a recent CNBC investigation into counterfeit drugs.
Price Action: GILD stock is down 1.65% at $73.11 at the last check on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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