PFE: Pfizer to Pay $325M Fine for Illegal Marketing

PFE paid another fine for the same actions six weeks ago

   

PFE: Pfizer to Pay $325M Fine for Illegal Marketing

Drugmaker Pfizer (PFE) has agreed to pay a $325 million to insurers and other healthcare benefit providers for falsely marketing its drug Neurontin.

pfe PFE: Pfizer to Pay $325M Fine for Illegal MarketingThe drug was marketed for unapproved uses.

This is the second settlement for the epilepsy drug in just over a month.

With the settlement, Pfizer will not admit to any wrongdoing.

Via Reuters:

It resolves allegations in a decade-old civil lawsuit that Pfizer and its Warner-Lambert Co unit sold Neurontin for uses for which it was neither approved by the U.S. Food and Drug Administration nor medically effective, in an effort to boost profit.

The plaintiffs included third-party payers that said they bought or reimbursed patients for the purchase of Neurontin from the defendants, or bought gabapentin, the chemical name for Neurontin, from Pfizer’s Greenstone LLC generic drug unit. Pfizer’s settlement also resolves claims under state antitrust laws.

Pfizer — which took in Neurontin from its purchase of Warner-Lambert in 2000 — last settled a $190 million suit in April, accused of trying to keep cheaper versions of the drug off the market.

Before that, Pfizer plead guilty in 2004 of marketing the drug for migraines — and had to pay a $430 million fine.

PFE stock is down 3% year to date.


Article printed from InvestorPlace Media, http://investorplace.com/2014/06/pfe-pfizer-fine-illegal-marketing-neurontin/.

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