AstraZeneca fined $520 million

[napi21]

Source: NY Times

AstraZeneca has completed a deal to pay $520 million to settle federal investigations into marketing practices for its blockbuster schizophrenia drug, Seroquel, the Attorney General, Eric Holder, said at a news conference Tuesday afternoon.

“AstraZeneca paid kickbacks to doctors as part of an illegal scheme to market drugs for unapproved uses,” Kathleen Sebelius, secretary of health and human services, said at the event in Washington. She said the company promoted drugs for unapproved uses by children, the elderly, veterans and prisoners.

Glenn Engelmann, AstraZeneca’s U.S. general counsel, released a statement saying the company denies the allegations but settled the investigation with the payment.

“It is in the best interest of AstraZeneca to resolve these matters and to move forward with our business of discovering and developing important, life-changing medicines — while avoiding the delay, uncertainty, and expense of protracted litigation,” Mr. Engelmann said


Read more: http://www.nytimes.com/2010/04/28/business/28drug.html?src=busln

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It amazes me that a Co. can agree to such a large steelement and not go out of business!

[Lance_Boyle]

1. Large? AZ does business in the BILLIONS annually.

This fine isn't even a slap on the wrist.

[SkyDaddy7]

2. Exactly! Just a cost of doing business!

They have probably made 10's of billions off the this drug alone...If not, then i am sure they made well more than the fine.

[flamin lib]

3. That's not so much.

PHIZER paid $1.2 billion for Bextra because they marketed it for "off label" use while knowing it increased heart attacks in patients by 65%. That's okay because they made $3.8 billion in profits from the drug before pulling it in 2009.

[Jefferson23]

4. I can't stand that term, moving forward, it is so damn expensive, for Americans.

[PfcHammer]

5. Will prolly pay it in a single wire transfer.

[McCamy Taylor]

6. Cost to the nation of increased obesity and diabetes is much higher than this.

People on Seroquel gain so much weight. The stuff is worse than prednisone. And unlike prednisone, there are a lot of otehr safer drugs that do what Seroquel was reported to do.

[OhioChick]

7. DoJ: AstraZeneca to pay $520 mln over Seroquel

Source: Market Watch

April 27, 2010, 2:37 p.m. EDT

SAN FRANCISCO (marketWatch) -- AstraZeneca will pay $520 million to settle claims it improperly marketed its anti-psychotic drug Seroquel, the Department of Justice said Tuesday. Under the settlement, the federal government will get $301.9 million from the civil settlement, and the state Medicaid programs will get up to $218.1 million. AstraZeneca was charged with promoting Seroquel for such unapproved uses as anxiety, attention deficit hyperactivity disorder, and bipolar maintenance, and for unapproved populations such as children and the elderly, according to the Justice Department.

Read more: http://www.marketwatch.com/story/doj-astrazeneca-to-pay-520-mln-over-seroquel-2010-04-27

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AstraZeneca to pay $520 million in illegal-marketing case

Tuesday, April 27, 2010; 4:24 PM

Pharmaceutical giant AstraZeneca will pay $520 million to settle allegations that the company illegally marketed an antipsychotic drug and paid kickbacks to physicians, the Justice Department announced Tuesday.

The settlement centers on the Delaware-based company's efforts to promote Seroquel, which the Food and Drug Administration has approved to treat disorders such as schizophrenia and bipolar depression. The government alleges that AstraZeneca aggressively marketed the drug for unapproved uses -- such as to treat Alzheimer's disease and anxiety -- to physicians, who then put patients at risk by prescribing it.

The Justice Department also contends that the company violated the federal anti-kickback statute by making illegal payments to physicians. They were allegedly recruited by AstraZeneca to present themselves as authors of articles the company had written about the drug.

The civil settlement was the latest step in an Obama administration crackdown on health-care fraud. "We will not let such actions stand," Attorney General Eric H. Holder Jr. said at a news conference. "This administration is committed to recovering taxpayer money lost to health-care fraud."

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/27/AR2010042703624.html

[McCamy Taylor]

8. The cost to the nation in increased diabetes and obesity is much higher than this.

Patients on Seroquel can easily put on 100 pounds. Which is bullshit when you consider how many other drugs are available to treat anxiety, bipolar and depression.

[sasquuatch55]

10. I agree ;I have gained. It makes you lethargic and groggy all day.

And the Psych. bitches at me because I don't get much exercise. Can't function on a drug hangover!
I waste away many days, not because I want to. And at my age I can't afford that.

[LiberalFighter]

11. Did they fine the physicians receiving illegal payments too?

If not, they should had.

[OhioChick]

13. That was my first thought. n/t

[change_notfinetuning]

9. Another day, another law breaking corporation, I mean "person", gets a

wink on the wrist. Considering the profits from the billions of dollars in improper sales of this drug, a fine of a half billion dollars can hardly be considered a slap.

[PSPS]

12. That $520 million comes from their kitty filled with prescription profits.

It's used to pay pesky fines like this as well as the usual list: obscene CEO salaries, yachts, islands, and, of course, senators and congressmen.