Amgen to Pay $762 Million to Settle Marketing Investigations
Dec 19th 2012 3:52PM
Updated Dec 19th 2012 4:02PM
Amgen announced Wednesday that it has finalized an agreement with the U.S. government, 49 states, and the District of Columbia resolving investigations into promotional practices for six drugs: Aranesp, Epogen, Neuopogen, Neulasta, Enbrel, and Sensipar.
The company pleaded guilty to a single misdemeanor count of misbranding Aranesp by promoting its use in a different way than was described on the label approved by the Food and Drug Administration. Doctors are free to use FDA-approved drugs in any way they see fit, but drug companies aren't allowed to promote the so-called off-label use.
Amgen will pay a criminal fine of $150 million as part of the plea agreement. The company also resolved civil liabilities for which it will pay the state and federal governments $612 million to cover allegedly fraudulent Medicare and Medicaid claims.
"Amgen acknowledges that mistakes were made, and we did not live up to our standards," Cynthia M. Patton, senior vice president and chief compliance officer at Amgen, is quoted as saying in the company press release.
Amgen took a charge in the third quarter of 2011 that will cover the $762 million payments, so the settlement won't have a negative effect on future earnings announcements.
The article Amgen to Pay $762 Million to Settle Marketing Investigations originally appeared on Fool.com.Fool contributor Brian Orelli has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.