by bvernia | November 3rd, 2009
In its release of third quarter results, AstraZeneca announced that it was increasing its reserve to settle allegations regarding Seroquel to $520 million, and that it had reached an agreement in principle with the U.S. Attorney’s Office in Philadelphia. The company stated:
As previously disclosed, the US Attorney’s Office in Philadelphia, working with a number of states as part of the National
Medicaid Fraud Control Unit, has been directing an investigation relating to Seroquel involving a review of sales and
marketing practices, including allegations that AstraZeneca promoted Seroquel for non-indicated (off-label) uses, and a
second investigation related to selected physicians who participated in clinical trials involving Seroquel. AstraZeneca
understands that these investigations are the subject of two sealed qui tam (whistleblower) lawsuits filed under the False
Claims Act. In September 2009, AstraZeneca reached an agreement in principle with the US Attorney’s Office to resolve
the investigations, subject to the negotiation and finalisation of appropriate implementing agreements, including civil
settlement agreements and a corporate integrity agreement. We have accordingly increased our provision with respect
to this matter to $520 million, taken in 2009. This forms part of the $538 million provision referred to earlier.
