Florida to Receive $8.5 Million in Medicaid Settlement with Pharmaceutical Company
TALLAHASSEE, Fla., December 29, 2008 – Attorney General Bill McCollum today announced that Florida will receive a total of $8.5 million as part of a $375 million global Medicaid settlement with Cephalon, Inc., an international biopharmaceutical company. The settlement resolves allegations of improper marketing for three prescription drugs, Provigil, Gabitril and Actiq. Florida's participation in the suit was handled by the Attorney General's Medicaid Fraud Control Unit.
"Pharmaceutical companies should be very conscious that Florida will investigate and pursue recovery for our Medicaid program for any conduct that undermines the program and passes the increased costs on to taxpayers," said Attorney General McCollum.
The settlement reimburses the federal government and the participating states for excessive amounts paid by the Medicaid program alleged to have resulted from Cephalon's off-label marketing campaign. While a physician is allowed to prescribe drugs for off-label uses, the law prohibits pharmaceutical manufacturers from marketing their products for off-label uses, therefore claims to the Medicaid programs as a result of the off-label marketing are impermissible.
Provigil is a drug used for improving wakefulness in patients with excessive sleepiness. Gabitril is an antiepilepsy drug. Actiq is intended to be used only in the care of cancer patients to treat pain.
Cephalon has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services, Office of the Inspector General, requiring strict scrutiny of its future marketing and sales practices. In addition to the civil investigation and settlement, the U.S. Attorney for the Eastern District of Pennsylvania filed criminal charges against the company, alleging a misdemeanor violation of the Food, Drug and Cosmetic Act. In a plea agreement with the United States, Cephalon has agreed to pay $50 million to resolve the charges.
The settlement resolves a number of state and federally-filed whistleblower lawsuits, known as "qui tam" lawsuits. All 50 states and the District of Columbia have signed the agreement.
Media Contact: Sandi Copes
Phone: (850) 245-0150
Pharma Industry News Archive
2008: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec
2007: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec
2006: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec
2005: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec
2004: Jan | Feb | Mar | Apr | May | Jul | Aug | Sep | Oct | Nov | Dec
2003: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec
2002: Jan | Apr | May | Jun | Aug | Sep | Oct | Nov | Dec
