Money corrupts Power
It will take HONEST Will Power to remove the
corruption in Money
And more to remove the corruption in Power
Is the Health Science Authority in Singapore geared to check on
the Pharmaceutical MNCs in Singapore ?
The drug giant pleads guilty to illegally marketing
Bextra, a painkiller removed in 2005. It's fined for illegally
marketing 13 drugs.
Posted by Charley
Blaine on Wednesday, September 2, 2009 11:51 AM
Drug giant Pfizer (PFE)
agreed today to plead guilty to a charge of illegally marketing the
now-withdrawn painkiller Bextra.
But that's not all. The drug giant agreed to pay $2.3 billion in
fines to settle allegations that it illegally marketed 13 drugs,
including Bextra. It is the largest fine ever levied for fraud in
the Medicare and Medicaid programs.
Shares of the Dow component were down 0.9% to $16.23. The shares
are down more than 8% this year.
Pfizer was deemed a repeat offender in pitching drugs to
patients and doctors for conditions not approved by healthcare
regulators.<!--EndofExcerptMarker-->
Pfizer had pleaded guilty in 2004 to an earlier criminal charge
of improper sales tactics and its marketing practices have been
under federal supervision since then.
The company, which is acquiring rival Wyeth
(WYE),
had warned in January that it had taken a $2.3 billion charge late
last year to resolve allegations involving Bextra and other drugs.
However, it didn't provide details.
Pfizer pulled from the market in 2005 after the Food and Drug
Administration said the drug could cause a dangerous skin condition
and as well as cause heart problems. At the time, Bextra was
generating $1.3 billion a year in sales
The settlement announced on Wednesday by Pfizer includes a $1.3
billion criminal fine related to methods of selling Bextra.
It also includes $1 billion in civil payments related to
so-called "off-label" sales of drugs -- meaning for uses not
authorized by the FDA -- and payments to healthcare
professionals.
Marketing fraud cases against pharmaceutical companies have
become almost routine,
The New York Times said, with
almost every major drug maker being accused of giving kickbacks to
doctors or shortchanging the Medicaid program on prices.
Prosecutors said that they have become so alarmed by the growing
criminality in the industry that they have begun increasing fines
into the billions of dollars and will soon start charging doctors
individually as well.
In January, prosecutors announced that they would fine
Eli Lilly (LLY)
$1.4 billion for its illegal marketing efforts on behalf of
Zyprexa, an antipsychotic.
Drug companies often pay physicians to prescribe their drugs to
patients.
In fact,
The Times reported today that
marketing plans developed by Forest Laboratories
(FRX)
for its drug Lexapro included using cash and other perks to
persuade psychiatrists, primary care doctors and other medical
specialists to prescribe the antidepressant.
Forest Labs shares were down 3.3% to $27.96 today.
Today's announcement was made by Health and Human Services
Secretary Kathleen Sebelius.
