Pfizer paying record $2.3B settlement for illegal promotions of 4 prescription drugs

By Devlin Barrett, AP
Wednesday, September 2, 2009

Pfizer to pay record $2.3B penalty over promotions

WASHINGTON — Pfizer Inc., the world’s largest drug maker, will pay a record $2.3 billion civil and criminal penalty over unlawful prescription drug promotions, the Justice Department announced Wednesday.

The department said the $2.3 billion settlement included a $1.2 billion criminal fine, the largest criminal fine in U.S. history. The agreement also included a criminal forfeiture of $105 million.

“Combating health care fraud is one of this administration’s top priorities,” Associate Attorney General Thomas Perelli said in announcing the settlement. He said it illustrates ways the department “can help the American public at a time when budgets are tight and health care costs are rising.”

The overall settlement is the largest ever paid by a drug company for alleged violations of federal drug rules.

The government said the company promoted four prescription drugs, including the pain killer Bextra, as treatments for medical conditions different than those the drugs had been approved for by federal regulators.

Use of drugs for so-called “off-label” medical conditions is not uncommon, but drug manufacturers are prohibited from marketing drugs for uses that have not been approved by the Food and Drug Administration.

A Pfizer subsidiary, Pharmacia and Upjohn Inc., which was acquired in 2003, has entered an agreement to plead guilty to one count of felony misbranding.

“These agreements bring final closure to significant legal matters and help to enhance our focus on what we do best — discovering, developing and delivering innovative medicines to treat patients dealing with some of the world’s most debilitating diseases,” said Amy W. Schulman, senior vice president and general counsel of Pfizer.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WASHINGTON (AP) — People familiar with a record settlement to be announced Wednesday say Pfizer Inc., the world’s largest drugmaker, will pay a $2.3 billion civil penalty over unlawful prescription drug promotions.

The U.S. Justice Department plans a news conference later in the day with FBI, federal prosecutors, and Health and Human Services Department officials to announce the terms of the deal. The people discussed the announcement on condition of anonymity because the court filings in the case were still under seal.

In financial filings in January, the company indicated that it would pay $2.3 billion over allegations it had marketed the pain reliever Bextra and possibly other products for medical conditions different than their approved use.

Use of drugs for so-called “off-label” medical conditions is not uncommon, but drug manufacturers are prohibited from marketing drugs for uses that have not been approved by the Food and Drug Administration.

The settlement is the largest ever paid by a drug company for alleged violations of federal drug rules.

Justice Department officials declined to comment.

Pfizer spokesman Chris Loder confirmed Wednesday that the $2.3 billion charge to the company’s earnings had been taken in the fourth quarter of 2008.

“No additional charge to the company’s earnings will be recorded in connection with this settlement,” he said.

Loder said he would have no further comment on the settlement until after the Justice Department news conference later Wednesday morning.

When Pfizer originally disclosed the settlement figure, it also announced plans to acquire rival Wyeth for $68 billion. That deal, which would bolster Pfizer’s position as the world’s top drugmaker by revenue, is expected to close before year’s end.

Shares of Pfizer were up 9 cents at $16.47 in early trading Wednesday.

____

AP Business Writer Linda A. Johnson in Trenton, N.J. contributed to this report.
Filed under: Consumer

Tags: , , , , , , , , , ,
Discuss Bellow
Discussion

Enroll
March 14, 2010: 11:38 am

This is a Quote from the Bible , Book of Isaiah Chapter 10:1–27 Note:there is only ONE TRUE LAWGIVER of Justice , The Justifier of the unjust ( JESUS) ISA 10:1 Woe to those who make unjust laws,
to those who issue oppressive decrees,ISA 10:2 to deprive the poor of their rights and withhold justice from the oppressed of my people, making widows their prey and robbing the fatherless.ISA 10:3 What will you do on the day of reckoning, when disaster comes from afar? To whom will you run for help? Where will you leave your riches? ISA 10:4 Nothing will remain but to cringe among the captives or fall among the slain.Yet for all this, his anger is not turned away, his hand is still upraised. ISA 10:5 “Woe to the Assyrian,(Assyria of yesteryear, America Today)the rod of my anger,in whose hand is the club of my wrath!ISA 10:6 I send him against a godless nation,I dispatch him against a people who anger me,to seize loot and snatch plunder,and to trample them down like mud in the streets.ISA 10:7 But this is not what he intends,this is not what he has in mind;his purpose is to destroy,to put an end to many nations.ISA 10:8 `Are not my commanders all kings?’ he says.ISA 10:9 `Has not Calno fared like Carchemish? Is not Hamath like Arpad,and Samaria like Damascus?ISA 10:10 As my hand seized the kingdoms of the idols, kingdoms whose images excelled those of Jerusalem and Samaria–ISA 10:11 shall I not deal with Jerusalem and her images as I dealt with Samaria and her idols?’ ” ISA 10:12When the Lord has finished all his work against Mount Zion and Jerusalem, he will say, “I will punish the king of Assyria( AMERICA) for the willful pride of his heart and the haughty look in his eyes. [13] For he says:”`By the strength of my hand I have done this,and by my wisdom, because I have understanding. I removed the boundaries of nations,I plundered their treasures;like a mighty oneI subdued their kings.ISA 10:14 As one reaches into a nest, so my hand reached for the wealth of the nations;as men gather abandoned eggs,soI gathered all the
countries;not one flapped a wing, or opened its mouth to chirp.’ “ISA 10:15 Does the ax raise itself above him who swings it,or the saw boast against him who uses it?As if a rod were to wield him who lifts it up,or a club brandish him who is not wood ISA 10:16 Therefore, the Lord, the LORD Almighty,will send a wasting disease upon his sturdy warriors;
under his pomp a fire will be kindled like a blazing flame.ISA 10:17 The Light of Israel will become a fire, their Holy One a flame;in a single day it will burn and consume his thorns and his briers.ISA 10:18 The splendor of his forests and fertile fields it will completely destroy,as when a sick man wastes away. ISA 10:19 And the remaining trees of his forests will be sofew that a child could write them down.ISA 10:20 In that day the remnant of Israel,the survivors of the house of Jacob,will no longer rely on him( America) who struck them down but will truly rely on the LORD,the Holy One of Israel.ISA 10:21 A remnant will return, a remnant of Jacob will return to the Mighty God. ISA 10:22 Though your people, O Israel, be like the sand by the sea,only a remnant will return.Destruction has been decreed,
overwhelming and righteous.ISA 10:23 The Lord, the LORD Almighty, will carry out the destruction decreed upon the whole land.ISA 10:24 Therefore,this is what the Lord, the LORD Almighty, says “O my
people who live in Zion,do not be afraid of the Assyrians,( Americans)who beat you with a rod and lift up a club against you, as Egypt did.ISA 10:25 Very soon my anger against you will end and my wrath will be directed to their destruction.”ISA 10:26 The LORD Almighty will lash them with a whip,as when he struck down Midian at the rock of Oreb; and he will raise his staff over the waters,as he did in Egypt.
ISA10:27 In that day their burden will be lifted from your shoulders,their yoke from your neck;the yoke will be broken because you have grown so fat.

N.KRISHNA PRASAD
November 5, 2009: 12:33 pm

Sub: The teacher’s illegal Promotions by producing the qualifications by from the non-recognised Deemed Universities–Reg

Ref:1) Lr.No:APSCHE-166-I/DT/RTI/JD/2009
Dt:11.6.2009
-o-
This is with reference to the letter which was sent by the Secretary, APSCHE, Hrderabad is self explanatory that University Grants Commission is not approved to the any Deemed Universities to offer the Distance Education through the Study Centers vide UGC CircularNO;F.6-9/2004(CPP-I) 23 rd August, 2005 and such type of Degrees & Diplomas awarded by any Deemed University is invalid including Allahabad Agriculture Institute, Deemed University, Allahabad (UP)

The APTRANSCO, APGENCO, APDISCOMS, APSRTC like other A P State Government Public Sector Undertakings are stopped to consider the such type of qualifications for the employment benefits still today based on the circular of UGC, New Delhi. But Andhra Pradesh state Education Department had been given promotions to the teachers before reference cited date who are qualified from the Deemed Universities by Distance Mode through the Study Centers of Andhra Pradesh Which is against to the rules of University Grants Commission, New Delhi.
Hence it is requested to review the such type of illegal promotions and take necessary action please for avoiding further complications.
YOUR VIEW POINT
NAME : (REQUIRED)
MAIL : (REQUIRED)
will not be displayed
WEBSITE : (OPTIONAL)
YOUR
COMMENT :
 
Submit