by bvernia | September 2nd, 2009
The DOJ announced finalization of the long-awaited settlement with Pfizer Inc. and its subsidiary, Pharmacia & Upjohn Co., primarily over the company’s promotion of the now-withdrawn arthritis drug, Bextra.
Pharmacia will plead guilty to a single felony count violation of the Food, Drug & Cosmetic Act, pay a criminal fine of $1.195 billion, and forfeit $105 million, for a total of $1.3 billion.
Pfizer will pay an additional $1 billion in a civil settlement of FCA allegations over Bextra and three other drugs: Geodon, Zyvox and Lyrica. The $1 billion will be split into approximately 2/3 federal, 1/3 state. The US also announced Pfizer’s agreement to a Corporate Integrity Agreement.
Six relators (in cases filed in Massachusetts, the ED Kentucky, and ED Pennsylvania) will share $105 million.
Full Disclosure: As an attorney at Covington & Burling LLP, I helped represent Pfizer Inc. in this matter.
