Pharmaceutical Kickbacks

Right now the pharmaceutical industry is in the middle of its biggest challenge in history. Whistleblowers have exposed and continue to expose fraudulent practices ranging from pricing issues to sales and marketing practices at a rate never anticipated by either the pharmaceutical industry or the Department of Justice. Settlements and jury verdicts have been headline grabbing and large, attracting the attention of pharma, regulators, Congress and taxpayers. The qui tam pharmaceutical fraud cases settled since 2000 alone have amounted to over 3.5 billion dollars, representing various patterns of fraud. We expect to see some new patterns as time goes by, especially with the new Medicare prescription drug benefit. Pharmaceutical fraud is still abundant and this blog is intended to keep readers up to date with all pharmaceutical fraud related news and to provide commentary when warranted. This blog also contains an array of laws and regulations concerning the Federal Food, Drug and Cosmetic Act set out in an easy to read format.

FDA approves Ranbaxy Laboratories’ drugs despite allegations of fraud and more

by Nolan and Auerbach on February 20, 2009

FDA has approved 18 products, including generic versions of commonly used cholesterol and allergy medications, by pharmaceutical giant Ranbaxy Laboratories, even though the government has accused the company of serious violations.

The government agency issued warnings to Ranbaxy late last year for more than 30 of the pharma giant’s generic drugs, produced at two plants in India. According to Inside Washington Publishers’ October 10, 2008 FDA Week, FDA sued Ranbaxy last summer, stating that the company was likely selling adulterated drugs in the U.S.

But FDA may have dropped the ball–some say, knowingly. FDA Week reports that FDA did not begin blocking Ranbaxy imports until September, even though the agency knew about the problems as early as 2005.

The Department of Justice is investigating claims that Ranbaxy produced HIV medication that contained insufficient active ingredients or was adulterated with other ingredients.

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