Tuesday, December 30, 2008
Drugmaker Pays $2.6 Million Over Off-Label Marketing
Law.com reports today that Nebraska Attorney General Jon Bruning has announced drugmaker Cephalon has paid more than $2.6 million to the state to settle allegations of off-label marketing of three pharmaceutical products. The settlement resolves allegations that Cephalon marketed drugs for uses not approved by the Federal Drug Administration. The drugs are Actiq, a highly addictive painkiller; the anti-seizure drug Gabitril; and the sleep-disorder drug Provigil. The money is part of a $425 million national settlement with state Medicaid programs. The Department of Health and Human Services, which runs Nebraska's Medicaid program, will receive $334,906. Some $669,812 will go into the state's school fund; $27,772 in interest will be prorated between the Medicaid program and the school fund; and $1.6 million goes back to the federal government. The state's Medicaid program is both state and federally funded. Cephalon recently also payed $431 Million to settle whistleblower suits.