Botox Maker to Pay $600M to Resolve Investigation

[sabra]

Source: ABC News/AP

Allergan to pay $600 million to settle Department of Justice probe into Botox marketing

Allergan Inc., the maker of wrinkle-smoothing Botox, says it will pay $600 million to settle a five-year-long federal investigation into its marketing of the top-selling, botulin-based drug.

The company said Wednesday in a statement it will plead guilty to one misdemeanor charge of "misbranding," in which the company's marketing led physicians to use Botox for unapproved uses. Those included the treatment of headache, pain, spasticity and cerebral palsy in children.

Companies are prohibited from promoting drugs for unapproved, or "off-label," uses.

Allergan, based in Irvine, Calif., said it will pay $375 million in connection with the plea. Additionally, the company will pay $225 million in civil fines related to the investigation, although the company denies liability for the civil claims.

Read more: http://abcnews.go.com/Health/Cosmetic/wireStory?id=11532864

[ceile]

1. oh boy,

I just had them at my conference as an exhibitor because of the uses for botox in regards to spasticity.

[Auggie]

2. Sounds like they're getting off easy

Denies civil liability

A misdemeanor in which no human will face punishment

A fine they can easily afford (market value of $20 billion)

LINK: http://www.ocbj.com/news/2010/aug/02/allergan-profit-tops-forecasts-investors-look-past/)

CORPORATE PERSONHOOD AT WORK

[David__77]

3. They should not have done that, but there's evidence Botox is indeed good for those things.

My ex's mom was treated for severe headache successfully by Botox. I kinda like the stuff, though saying so will get many a person riled up.