Bristol-Meyers Squibb to pay $515 million for illegal drug marketing
Pharma Compliance Alert, October 3, 2007
Bristol-Myers Squibb Company (BMS) and its wholly owned subsidiary, Apothecon, Inc., will pay more than $515 million and enter into a corporate integrity agreement (CIA) to resolve allegations involving their drug marketing and pricing practices, the Department of Justice (DOJ) announced.
According to the DOJ, BMS paid illegal remuneration to physicians and other healthcare providers in the form of consulting fees and expenses to participate in various consulting programs, advisory boards, and preceptorships, to induce them to purchase BMS drugs. The DOJ said BMS promoted the sale and use of Abilify, an atypical antipsychotic drug, for off-label uses. BMS also allegedly failed to report the best price for its antidepression dru,g Serzone.
The DOJ said Apothecon paid illegal remuneration, such as stocking allowances, price protection payments, prebates, market share payments, and free goods, to induce its retail pharmacy and wholesaler customers to purchase its products.
Both BMS and Apothecon allegedly maintained fraudulent prices on a variety of oncology and generic drugs.
The settlement settles seven whistleblower lawsuits brought against BMS under the False Claims Act.
Click here to read the DOJ press release and click here to read BMS's CIA.
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