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.

Purdue Pharma Agrees to $19.5 Million Settlement Over Off Label Marketing of OxyContin

by Nolan and Auerbach on May 25, 2007

Purdue Pharma has agreed to settle claims by 26 states and the District of Columbia for marketing and promoting OxyContin for unapproved uses i.e. for use every 8 hours as opposed to the FDA approved dosage of every 12 hours.  The states alleged that FDA rules were violated by Purdue promoting OxyContin as the painkiller “to start with and the one to stay with” for numerous kinds of pain even though the drug was specifically approved a more limited use in patients who need long-term pain management.  Further, the states contend that Purdue paid its sales force based on how much physicians prescribed OxyContin which led to the “misuse, diversion and abuse” of OxyContin according to Connecticut Attorney General Richard Blumenthal. Pursuant to the $19.5 million settlement, Purdue must immediately stop its off-label marketing and heed the warning label contained on its packaging.

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