September 2, 2009

LANSING - Attorney General Mike Cox today announced a pair of settlements on behalf of the State of Michigan totaling $15 million as a result of claims that drug manufacturer Pfizer engaged in improper marketing of its products. 

First, the Michigan Attorney General's office joined several other states and the federal government in a $2.3 billion settlement with Pfizer, which is the largest health care fraud settlement in national history.  The settlement resulted from civil and criminal allegations that Pfizer and its subsidiaries paid kickbacks and improperly conducted off-label pharmaceutical marketing campaigns for certain uses which the Food and Drug Administration had not approved.  While a physician is allowed to prescribe drugs for off-label uses, federal law prohibits pharmaceutical manufacturers from marketing their products for off-label uses. 

As part of the $2.3 billion settlement, Pfizer will pay the states and the federal government $1 billion in civil damages and penalties to compensate Medicaid, Medicare, and other federal healthcare programs for harm suffered as a result of its conduct.  The Michigan Medicaid Program's share of the recovery will be $14,802,680.  Because the costs of the Medicaid program are shared with the federal government, Michigan will retain $7,088,898 and the balance will go to the federal government. 

In addition, Pharmacia & Upjohn Company, Inc., a Pfizer subsidiary, has agreed to plead guilty to a felony violation of the Food, Drug, and Cosmetic Act for misbranding a drug with the intent to defraud or mislead.  The criminal component of the resolution centers on the illegal marketing of the drugs Bextra, Lyrica and Zyvox.

In another settlement announced today, Michigan joined 42 other states in a $33 million national settlement resulting from allegations that Pfizer illegally marketed the antipsychotic drug Geodon for off-label purposes.  As a result of the settlement, Pfizer must not promote the drug for "off-label" uses that are not approved by the U.S. Food and Drug Administration. 

Michigan will receive at least $1,026,950, which will be deposited into the General Fund, to reimburse the state for costs and fees incurred over the course of the investigation, or to be used for enforcement of consumer protection laws.  

"Today's record settlement represents a major victory in the battle to protect Michigan patients, consumers and taxpayers," said Cox.  "This record-breaking settlement sends a clear signal that we will not tolerate actions that put Michigan residents at risk."

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