Pharma-giant Pfizer has agreed to pay the largest criminal fine in U.S. history–$1.195 billion–for marketing its drug Bextra for unapproved “off-label” uses. The company ran afoul of the Food, Drug and Cosmetic Act when it chose to market Bextra for purposes other than the anti-inflammatory treatment for which it was approved by the Food and Drug Administration (FDA).
Along with subsidiary Pharmacia and Upjohn Co., Pfizer will fork over a total of $2.3 billion to settle its health care fraud suit by the Department of Justice (DOJ), the largest such settlement in U.S. history.
A cool $1 billion of the settlement is to settle allegations under the False Claims Act that the company marketed four drugs–Bextra, Geodon, Zyvox and Lyrica–for off-label purposes for which they were not FDA-sanctioned.
Whistleblowers who alerted the DOJ to the Pfizer off-label marketing will earn $105 million out of the settlement.
The rest will go to Dr. Ezekiel Emanuel to create a death panel.
Oops, just kidding on that last one!
“Today’s landmark settlement is an example of the Department of Justice’s ongoing and intensive efforts to protect the American public and recover funds for the federal treasury and the public from those who seek to earn a profit through fraud. It shows one of the many ways in which federal government, in partnership with its state and local allies, can help the American people at a time when budgets are tight and health care costs are increasing,” said Associate Attorney General Tom Perrelli.