Securities regulatory documents reviewed by the Wall Street Journal (The Wall Street Journal)Federal prosecutors in the United States are investigating whether large drug companies such as Sanofi, SNY, Gilead Sciences Inc. (GILD) and Biogen Inc. (BIIB) have violated the law by providing free services to doctors and patients.

Drug companies say these services, such as care and reimbursement assistance, help doctors and patients. The practice has become more common as drug companies introduce more complex and expensive drugs, but it has also prompted prosecutors to examine whether it has an illegal commercial purpose-induced sales.

Amgen Inc, Bayer AG, BAYRY and Eli Lilly and Co & Co., LLY are all facing whistleblower lawsuits accusing the services of illegal kickbacks.Meanwhile, the California Insurance Commissioner sued this weekAbbVie Inc., ABBV, accused the company of offering kickbacks in the form of care support and insurance assistance to encourage doctors to prescribe the company's arthritis drug Humira.

Eberway said California's allegations and previous whistleblower lawsuits were groundless and that the company complied with state and federal laws. Aberdeen also said that once a patient is given a Humira, the company will provide services to the patient.

Bayer and Eli Lilly and Co said the whistleblower lawsuits against the two companies were unfounded and Amgen Inc declined to comment.

Federal anti-kickback regulations prohibit payments to induce prescriptions or other health care reimbursed by government health programs.

By Peter Loftus; Write to Peter Loftus at peter.loftus@wsj.com
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