“While it is not illegal for a physician to prescribe a drug for an unapproved use, federal law prohibits a manufacturer from promoting a drug for uses not approved by the FDA,” Ohio Attorney General Richard Cordray said.
The agreement involves the federal government and multiple states, including Ohio.
Pfizer agreed to pay $1 billion in civil damages and penalties to compensate Medicaid, Medicare, and various other health programs for harm attributable to the company’s actions, authorities said. Ohio’s $32 million share of that will be returned to the federal and state portions of Medicaid, Cordray spokeswoman Kim Kowalski said.
In addition, Pfizer subsidiary Pharmacia & Upjohn Inc. agreed to plead guilty to a felony violation of the Food, Drug and Cosmetic Act and to pay a criminal fine and forfeiture of $1.3 billion for illegal marketing and promotion of Bextra, authorities said.
The offense involved the company’s misbranding of the drug with the intent to defraud or mislead, Cordray said.
Ohio, 41 other states and the District of Columbia also reached a $33 million settlement with Pfizer of alleged violations of local consumer laws concerning the improper marketing of Geodon. Ohio will use its $1.1 million portion of that settlement to offset its investigation costs and support the attorney general’s consumer protection program, Kowalski said.
Pfizer said it agreed with the U.S. Department of Health and Human Services inspector general to submit to monitoring of the company’s product marketing and sales practices for five years.
Pfizer said it regrets its past practices, but has strengthened its internal controls. The company posted a profit of $8.1 billion in 2008 on revenues of $48.3 billion.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
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