By CHAD BRAY
Drug maker Novo Nordisk A/S's U.S. affiliate has agreed to pay more than $25 million to end investigations by U.S. authorities related to the marketing of NovoSeven and several diabetes drugs.
In one settlement, Novo Nordisk Inc., the U.S. affiliate, agreed to pay $25 million to end a probe and settle a civil lawsuit related to alleged improper marketing practices regarding Novo Seven, which is used to treat patients suffering from rare bleeding disorders. The complaint had alleged that Novo Nordisk promoted NovoSeven for unapproved uses.
"We are committed to running our business according to high legal and ethical standards and have been cooperating with the government since the investigation began," said Jim Shehan, corporate vice president and U.S. general counsel for Novo Nordisk Inc. "With this settlement, we avoid the distraction and costs of a lengthy legal battle, which would not have been in the best interest of the company or its stakeholders."
Novo Nordisk denies any wrongdoing related to NovoSeven marketing and has agreed to enter a five-year corporate integrity agreement with the U.S. Department of Health and Human Services in which it will add additional reporting and other procedures to its compliance program.
Separately, the U.S. affiliate also agreed to pay $1.73 million in a settlement with the U.S. government to resolve allegations that its sales representatives accessed confidential patient information and submitted false Medicaid claims related to the marketing of diabetes drugs, including Novolin and Novolog.
Federal prosecutors in Brooklyn, N.Y., had alleged Novo Nordisk representatives made payments to pharmacists in exchange for recommendations for Novolin and Novolog products. As part of their activities, the pharmacists, or Novo Nordisk sales representatives, accessed confidential patient information, according to the settlement agreement.
"We are committed to battling health-care fraud, especially when money is exchanged in an attempt to impact treatment decisions," said Loretta E. Lynch, the U.S. Attorney in Brooklyn. "The allegations in this case were particularly egregious because they involved the disclosure of confidential patient information."
Novo Nordisk didn't admit wrongdoing in the Novolin pact. The probe began after a former Novo Nordisk sales representative filed a whistleblower complaint in federal court in Brooklyn.
The settlement covers alleged activities between June 2003 and September 2005 in Delaware, Maryland, Virginia, Pennsylvania and Washington.
Write to Chad Bray at chad.bray@dowjones.com
Friday, June 10, 2011
Novo Nordisk to Settle Marketing Suit - WSJ.com
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1 comment:
That seems like a drop in the bucket of their revenues. If corporations risked dissolution or their leaders faced actual jail time, I think things like this would be less common.
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