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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