Monday, September 14, 2009

Manufacturing Giant Pfizer Agrees to a $2.3 Billion Penalty in Health-Care Fraud Settlement

Pfizer, one of the largest drug manufacturers in the US, is paying $2.3 billion dollars in penalties for misbranding its popular arthritis drug, Bextra.

The company pleaded guilty to illegally promoting its products "with the intent to defraud or mislead." The Food and Drug Administration had pulled Bextra off the market shelves in 2005.

Pfizer settled at $2.3 billion because it was marketing its drug for a purpose not approved by the FDA.The FDA had asked that Pfizer remove Bextra from U.S. and European pharmaceutical markets, claiming the fear about the threat of strokes and heart attacks, as well as the grave skin reactions, and other cardiovascular issues.

Pharmacia & UpJohn, a company owned by Pfizer, will be pleading guilty to a criminal charge of fraud.

The penalty is one of the largest drug settlements to date.

Read more about this story HERE

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