Drug Company Fined $515 Million

From the Associated Press:

Bristol Settles Drug Marketing Probe

Bristol-Myers Squibb Co. and a former subsidiary have agreed to pay more than $515 million to settle federal and state investigations into their drug marketing and pricing practices.

The civil settlement announced Friday resolves a broad array of allegations against Bristol-Myers Squibb, dating from 1994 through 2005.

Among them were a charge that the New York-based pharmaceutical company illegally promoted the sale of Abilify, an anti-psychotic drug, for pediatric use and to treat dementia-related psychoses. Neither use is approved by the U.S. Food and Drug Administration.

In the second quarter, the company reported $412 million in sales of Abilify, approved to treat bipolar disorder and schizophrenia, a 27 percent increase from a year earlier.

Although physicians are permitted to prescribe drugs for off-label uses, drug companies are prohibited from marketing them for uses that have not been approved by the FDA. [full text]

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One thought on “Drug Company Fined $515 Million

  1. Among them …

    Question is, what were some of the other charges? The reason why I ask is that I am not sure if the Abilify sales were a main reason for the settlement, unless I am missing something. You mentioned a broad array of allegations. Something more systemic is behind this, but what?

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