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Pfizer to pay $34 million settle charges of improper marketing

Pharma Compliance Alert, April 4, 2007

Pfizer will pay $34.7 million to settle separate allegations of off-label marketing and improper inducements by two Pharmacia subsidiaries, the company reported this week. Pfizer acquired Pharmacia in 2003, and both settlements involve the human growth hormone Genotropin.

One subsidiary, Pharmacia & Upjohn Company Inc, will plead guilty to one count of offering an outside vendor a contract to manage a Genotropin patient assistance program in exchange for recommending the purchase of Pharmacia medicines. The other subsidiary, Pharmacia & Upjohn Company LLC, has entered into a Deferred Prosecution Agreement with the Department of Justice regarding the off-label marketing of Genotropin.

Pfizer distanced itself from the actions of both of these subsidiaries, saying in a statement that the illegal activities occurred before it acquired Pharmacia. Pfizer also pointed out that it discovered and voluntarily reported the off-label marketing before it acquired Pharmacia, and notes that the Department of Justice has acknowledged this.

Allen Waxman, Pfizer's senior vice president and general counsel said in the statement that "Pfizer's marketing and promotion practice are not involved in the settlement," adding that the company has controls to prevent this kind of activity.

Read more about the settlement on Pfizer's Web site.

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