Drug Suit Settled With $700K Paid to NJ

A pharmaceutical company owned by Pfizer has agreed to pay the state $700,000 for marketing a drug that was not approved by the U.S. Food and Drug Administration (FDA) before promoting it.

Wyeth Pharmaceuticals, which was acquired by Pfizer in 2009, had violated both state and federal laws by promoting the kidney transplant drug Rapamune for use by other organ transplant patients, Acting Attorney General John Hoffman said Tuesday. The drug, Hoffman said, is only approved by the FDA for kidney transplant patients.

Fraudulent Medicaid claims can result if the drug is used improperly, Hoffman said.

“Marketing drugs for unapproved uses is wholly inappropriate, and the resultant false billing to government health care programs costs every one of us,” Hoffman said. 

“Through our own efforts, and through a collaborative effort with our state and federal partners, we are committed to identifying Medicaid fraud and abuse, and to holding those who engage in such conduct accountable.”

Tuesday's settlement announcement came after an investigation of actions filed by former employees of the company, as well as state false claim statutes in Oklahoma and Pennsylvania, Hoffman said.

Also included in the national settlement, the pharmaceutical company pleaded guilty in Oklahoma to a misbranding offense and will be forced to pay more than $233 in criminal fines and forfeitures, Hoffman said.

The alleged inappropriate activity on part of Wyeth occurred before Pfizer acquired the company, Hoffman said.

"Pfizer cooperated fully with the federal government and the states in the Rapamune investigation," he added in a press release.