Saturday, February 02, 2013
Shire to pay $57.5 million over marketing of five drugs
David Sell, Inquirer Staff Writer
Posted: Saturday, February 2, 2013, 3:01 AM
Shire P.L.C. said Friday that it would pay $57.5 million as part of a tentative agreement with the Justice Department to settle an investigation related to marketing practices of five drugs.
A spokeswoman for the U.S. Attorney's Office in Philadelphia, which handled the investigation, declined comment.
Shire has its headquarters in Ireland, but its main office is in Wayne, Delaware County. Shire said the drugs involved are Adderall XR, Vyvanse, Daytrana, Lialda, and Pentasa.
Some companies will announce such tentative agreements because they want to avoid criticism from investors or financial regulators for not disclosing information that can have an impact on earnings. Shire mentioned the investigation in Securities and Exchange Commission filings after receiving subpoenas in 2009. Shire said Friday that it applied the $57.5 million to its books for the fourth quarter of 2012. The company will report fourth-quarter and full-year results Feb. 14.
Meanwhile, in a separate investigation not covered by this agreement, federal prosecutors in Florida and Washington are looking at marketing practices related to Dermagraft, a skin substitute for wound closure of diabetic foot ulcers. Shire acquired Dermagraft when it bought Advanced BioHealing in 2011, and a spokeswoman said the company was cooperating with the government.
Contact David Sell at dsell@ phillynews.com or 215-854-4506, or follow on Twitter @phillypharma. Read his blog at www.philly.com/phillypharma.