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United Daily News / International Center / Comprehensive Report
U.S. federal authorities announced on the 2nd that Pfizer, the world's largest pharmaceutical company, has pleaded guilty to criminal charges related to the illegal marketing of the painkiller Bextra and other prescription drugs. The company will pay a $2.3 billion (approximately NT$76 billion) fine, setting a record for the highest penalty in a marketing fraud case involving Medicare and Medicaid.
The painkiller Bextra was fully recalled in 2005 after it was found to pose risks of heart attacks, strokes, and fatalities.
The U.S. Department of Justice and the Department of Health and Human Services jointly announced the settlement on the 2nd. According to the agreement between the Justice Department and Pfizer, the company will pay $1.3 billion in criminal fines related to Bextra and another $1 billion in fines related to other prescription drugs.
Additionally, Pharmacia & Upjohn, a subsidiary of Pfizer, will plead guilty to charges of illegally promoting Bextra.
While the $2.3 billion fine may seem substantial, it amounts to only three weeks of Pfizer’s revenue. Six companies that initially reported Pfizer’s misconduct will share $102 million from the penalty.
This marks the fourth case in the past decade where a company has sought a settlement after being charged by the government. Authorities noted that Pfizer has repeatedly violated regulations and will be subject to continued monitoring of its marketing practices for the next five years to prevent further offenses. Given the unprecedented scale of the criminal fine in this case, Massachusetts U.S. Attorney Michael Loucks stated, "The size and seriousness of this resolution reflect the seriousness and scope of Pfizer’s crimes."
Loucks said that to promote its drugs, Pfizer invited doctors to advisory meetings at resort destinations, covering all expenses and providing monetary compensation. He added, "Pfizer treated doctors to golf, massages, and other activities."
Authorities pointed out that Pfizer promoted four prescription drugs—Bextra, the antipsychotic Geodon, the antibiotic Zyvox, and the nerve pain treatment Lyrica—for uses not approved by the U.S. Food and Drug Administration (FDA). While the use of so-called "off-label" drugs is not uncommon, the FDA prohibits pharmaceutical companies from marketing drugs for unapproved purposes.
Source: http:/ / mag. udn. com/ mag/ world……_SUB_ID=4321& f_ART_ID=215974
Pfizer Fined Record $76B for Illegal Drug Sales
U.S. federal authorities announced on the 2nd that Pfizer, the world's largest pharmaceutical company, has pleaded guilty to criminal charges related to the illegal marketing of the painkiller Bextra and other prescription drugs. The company will pay a $2.3 billion (approximately NT$76 billion) fine, setting a record for the highest penalty in a marketing fraud case involving Medicare and Medicaid.
The painkiller Bextra was fully recalled in 2005 after it was found to pose risks of heart attacks, strokes, and fatalities.
The U.S. Department of Justice and the Department of Health and Human Services jointly announced the settlement on the 2nd. According to the agreement between the Justice Department and Pfizer, the company will pay $1.3 billion in criminal fines related to Bextra and another $1 billion in fines related to other prescription drugs.
Additionally, Pharmacia & Upjohn, a subsidiary of Pfizer, will plead guilty to charges of illegally promoting Bextra.
While the $2.3 billion fine may seem substantial, it amounts to only three weeks of Pfizer’s revenue. Six companies that initially reported Pfizer’s misconduct will share $102 million from the penalty.
This marks the fourth case in the past decade where a company has sought a settlement after being charged by the government. Authorities noted that Pfizer has repeatedly violated regulations and will be subject to continued monitoring of its marketing practices for the next five years to prevent further offenses. Given the unprecedented scale of the criminal fine in this case, Massachusetts U.S. Attorney Michael Loucks stated, "The size and seriousness of this resolution reflect the seriousness and scope of Pfizer’s crimes."
Loucks said that to promote its drugs, Pfizer invited doctors to advisory meetings at resort destinations, covering all expenses and providing monetary compensation. He added, "Pfizer treated doctors to golf, massages, and other activities."
Authorities pointed out that Pfizer promoted four prescription drugs—Bextra, the antipsychotic Geodon, the antibiotic Zyvox, and the nerve pain treatment Lyrica—for uses not approved by the U.S. Food and Drug Administration (FDA). While the use of so-called "off-label" drugs is not uncommon, the FDA prohibits pharmaceutical companies from marketing drugs for unapproved purposes.
Source: http:/ / mag. udn. com/ mag/ world……_SUB_ID=4321& f_ART_ID=215974