Boston, MA 06/09/2014 (wallstreetpr) – Global pharmaceutical company, Pfizer Inc. (NYSE:PFE) has agreed to settle Neurontin drug issue with the health-care benefit providers for the alleged unapproved usage of the drug. However, the company has refused to admit committing any wrongdoing, though this is the second settlement within a span of six months on the same issue.
Settlement of Neurontin Issue
The drugmaker will pay $325 million to settle the issue arising out of the alleged cheating of healthcare benefit providers and insurers by selling Neurontin, an epilepsy drug, for unapproved uses. A preliminary agreement has been conveyed to the U.S. District Court of Boston since it needs Chief Judge Patti Saris approval to proceed further in the matter.
The latest settlement is preceded by another accord wherein the New York-based drug maker had to cough up $190 million over the same issue in a separate case. Pfizer disclosed that the agreement reached in Boston will settle all third-party payer claims with regard to off-label promotion.
Similarly, in 2004, the company had to pay $430 million for promoting the drug Neurontin for pain and migraine headaches inviting criminal charges for its alleged illegal marketing.
Unapproved Usage
In 2000,Pfizer Inc. (NYSE:PFE) bought Warner-Lambert, which produces Neurontin. In 2011, lawyers for the benefit companies filed an amended complaint charging Pfizer of deliberately spreading the off-label promotion of Neurontin usage.
The allegation against Warner-Lambert Co., which was part of Parke-Davis, was that the company had paid kickbacks to doctors to promote prescribing the anti-seizure drug for uses not approved by the regulator. This included panic and bipolar disorders. The benefit firms said that the settlement brings to an end of more than decade old hard fought litigation with the drug maker.
The drug has been accorded approval for pain and epilepsy treatment from herpes zoster or shingles. The complaint also alleged that there was deliberate delay on the part of the drug maker by resorting to filing and maintaining sham lawsuit with regard to some patents and misrepresentation of facts.
