Pfizer unit fined record $1.3 billion for drug misbranding

Pharmacia & Upjohn Co, a subsidiary of Pfizer Inc, the world's largest drug maker was sentenced to pay a record fine of $1.3 billion by the US Department of Justice yesterday for illegal marketing of medicines including painkiller Bextra.

The Massachusetts district judge, Douglas Woodlock ruled Pfizer to pay a criminal fine of around $1.2 billion, the largest ever imposed in US, and a criminal forfeiture of $105 million, approving the settlement reached earlier.

Last month, the New York-based drug maker agreed to pay $2.3 billion, the largest health care fraud settlement in the history of the Department of Justice, to resolve criminal and civil liability arising from the illegal promotion of certain pharmaceutical products including painkiller Bextra. (See: Pfizer agrees to pay $2.3 billion to settle illegal marketing case)

Most media had missed the $2.3-billion fine since Pfizer disclosed it only on the day it announced its released its Q4 earnings and merger with Wyeth, caught the entire focus of  media.

The settlement eclipses the $1.42 billion payment earlier this year by Eli Lilly and Co, another drug major to resolve allegations of off-label sales and marketing of its Zyprexa, antipsychotic drug in US during 1999-2001. At that time Pfizer indicated that it has kept $2.3 billion to resolve allegations pertaining to certain drugs, without giving the details. 

Pfizer's payment includes $1 billion in civil penalties, for illegally promoting four drugs: painkiller Bextra, Deodon, an anti-psychotic drug, Zyvox, an antibiotic and Lyrica, an anti-epileptic drug, for uses other than those permitted by the US Food and Drug Administration (FDA).