Pfizer to Pay $491M Over Illegal Marketing of Kidney Drug

It took an earnings charge relating to the settlement last year

   

prescription drugs 300x180 Pfizer to Pay $491M Over Illegal Marketing of Kidney DrugOn Tuesday, the U.S. Justice Department announced that it had negotiated a settlement of charges stemming from improper sales practices by a major pharmaceutical giant.

The deal, which settles civil and criminal claims arising from the marketing of a kidney-transplant treatment, will cost Pfizer (PFE) $491 million. The company took a charge for cost of the settlement during last year’s third quarter in anticipation of the deal, the New York Times noted.

pfe Pfizer to Pay $491M Over Illegal Marketing of Kidney Drug
Pfizer to Sell Vaccine to Poor Countries for Fraction of Price

Charges against Pfizer stemmed from the improper marketing of Rapamune by Wyeth Pharmaceuticals, which Pfizer purchased in 2009. Though the Food and Drug Administration (FDA) had cleared the drug only for use in patients who had received a kidney transplant, Wyeth promoted it to patients who had received other organ transplants as well.

The government alleged that Wyeth encouraged its sales team to market the drug beyond its FDA approval by providing incentives. The government noted that Pfizer had cooperated in the investigation.

In 2009, Pfizer paid $2.3 billion to settle charges that it improperly promoted a number of other drugs.

Shares of Pfizer rose fractionally in pre-market trading on Wednesday.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/pfizer-to-pay-491m-over-illegal-marketing-of-kidney-drug/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.