Illinois to get more than $5M from $491M drug marketing settleme - New York News

Illinois to get more than $5M from $491M drug marketing settlement

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CHICAGO (Sun-Times Media Wire) -

Illinois' Medicaid program will see $5.5 million of a $491 million state and federal settlement with pharmaceutical manufacturer Wyeth, Illinois Attorney General Lisa Madigan's office announced on Tuesday.

The settlement will resolve civil and criminal allegations that Wyeth illegally marketed an organ transplant anti-rejection drug for unauthorized uses that resulted in millions of dollars in false claims to state and federal Medicaid programs, a release from Madigan's office said.

The complaints alleged that Wyeth knowingly engaged in illegal marketing practices in its promotion of the prescription drug Rapamune, a kidney transplant drug prescribed to prevent a patient's body from rejecting an organ donation, the release said.

The complaints allege that Wyeth encouraged its employees to market and sell Rapamune for so-called "off-label" uses, or uses that were not approved by the U.S. Food and Drug Administration (FDA), including treating liver transplants, despite an FDA warning advising against such use. The complaint alleges Wyeth also continued to market Rapamune for other non-renal transplant patients and for changes in drug therapies, which have not been found to be safe and effective.

Wyeth has agreed to pay the states and the federal government $257 million in civil damages and penalties, of which more than $60 million will go to state and federal Medicaid programs, including $5.5 million for Illinois' program, the release said. Additionally, Wyeth has pleaded guilty in federal court in Oklahoma to violations of the U.S. Food, Drug, and Cosmetic Act, and has agreed to pay $233 million in criminal fines and forfeitures.

Wyeth was acquired by Pfizer Inc. in late 2009. The illegal marketing practices Wyeth settled with the states and federal government occurred prior to Pfizer's acquisition of the company. Pfizer cooperated fully with the federal government and the states in the investigation, the attorney general's office said.

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