Tuesday, December 17, 2024

Brief Blog: OIG Allows Biopharma to Pay for Certain Genetic Testing

There is always an area of legal caution and concern when biopharma pays for services, like genetic testing that is the gateway to a particular drug.

On December 17, 2024, OIG released an Advisory Opinion favorable to allow a biopharma to pay for genetics, and genetic counseling, related to its drug for a rare genetic cause of oxalate overproduction.

Find the report here:

https://oig.hhs.gov/documents/advisory-opinions/10117/AO-24-12.pdf

The OIG finds that the genetic services DO provide remuneration under the Anti Kickback Statute (AKS) and Beneficiary Inducement Civil Monetary Penalties (BI-CMP).   However, the OIG reasons that the risk of over use or improper use is very low and it would not seek penalties.

The case mentions that the lab is Blueprint Genetics, a subsidiary of Quest.   The case carefully redacts the name of the pharma and drug; the only rare genetic oxalate drug I know of is Oxlumo (lumasiran), from Alnylam (for primary hyperoxaluria Type 1 PH1).  On approving Oxlumo, FDA remarked, "PH1 affects an estimated one to three individuals per million in North America and Europe."  The drug is an RNAi therapeutic.

##
Oxlumo was approved in 2020 and got a label expansion in 2022 for plasma oxalate reduction in CKD patients.