Celgene (CELG) Shares Drop After Huge Allegations

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Celgene shares saw a drop in price in pre market trading on Monday. A whistle blower has alleged that the company donated hundreds of millions to charities that help patients afford pricey drugs in order to ensure its own medicines were covered.

According to the lawsuit by Beverly Brown, a former Celgene sales representative, the biopharma giant was able to collect billions of dollars in reimbursements from Medicare and other public health plans.

“Ms. Brown is wrong and her allegations are baseless,” a company spokesperson told Bloomberg.

According to the spokesperson, Celgene complied with federal rules about charitable donations.

Disclaimer: We have no position in Celgene Corporation (NASDAQ: CELG) and have not been compensated for this article.