Bristol-Myers Squibb To Pay $515M To Settle Federal, State Investigations

Main Category: Pharma Industry / Biotech Industry
Also Included In: Litigation / Medical Malpractice
Article Date: 03 Oct 2007 - 8:00 PDT


Bristol-Myers Squibb on Friday said it would pay more than $515 million to settle federal and state investigations into drug marketing and pricing practices, AP/USA Today reports. The former BMS subsidiary Apothecon, a generic drug maker, also is being investigated. The allegations against BMS, stemming from actions between 1994 and 2005, include:

• Off-label marketing of anti-psychotic drug Abilify for pediatric use and to treat psychoses related to dementia;
  
  
• Illegally paying health care providers in the form of trips and consulting fees to prescribe its drugs;
  
  
• Misreporting to CMS its best price for anti-depression treatment Serzone; and
  
  
• Inflating prices for some oncology and generic drugs to increase reimbursement rates.

Apothecon was accused of giving illegal enticements to retail pharmacies and wholesalers to buy its drugs. BMS in a statement said that the settlement would not change its business with any customers, including the federal government (Lavoie, AP/USA Today, 9/29).

ABC's "World News" on Friday reported on the settlement. The segment includes comments from U.S. Attorney Michael Sullivan and Bill Vaughan, a senior policy analyst at Consumers Union (Pierre Thomas, "World News," ABC, 9/30). Video of the segment is available online.

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