American states receive million-dollar settlements from drugmaker Cephalon
31 Dec 2008
Several American states will receive millions of dollars million from a pharmaceutical manufacturer to settle claims of improper off-label marketing of several drugs.
While Kansas will receive more than $1.1 million, Massachusetts' share is $4.7 million, Kentucky's $2.3 million and Wisconsin gets $2.1 million. Several other states settled for similar amounts.
Prosecutors claimed Pennsylvania-based drugmaker Cephalon had marketed its products for off-label uses to doctors. The company agreed in October to pay a $375 million civil settlement, a $40 million criminal fine and $10 million in criminal forfeiture.
"By this off-label marketing scheme, Cephalon was increasing its sales in an unsafe and irresponsible manner," Wisconsin Attorney General JB Van Hollen said in a news release.
"The Kansas Medicaid program will receive over $1.1 million in reimbursements," Kansas Attorney General Steve Six said. "Not only does this settlement reimburse the Kansas Medicaid program, it creates strict marketing guidelines for Cephalon to protect Kansas patients."
The following drugs were part of the settlement:
- Provigil, which the FDA approved for sleep disorders but which Cephalon marketed as an aid to treat lack of energy and fatigue.
- Gabitril, an approved treatment for seizures that also had been promoted as a remedy for anxiety, insomnia and pain.
- Actiq, a cancer treatment medication that Cephalon marketed as a migraine headache remedy, among other uses.