DoJ Sets Its Sights On DESI Drugs: Eon Labs Settles Claims It Marketed An Ineffective Drug
This article was originally published in The Pink Sheet Daily
Novartis subsidiary agrees to pay $3.5 million to settle claims it illegally sought government reimbursement for Nitroglycerin SR after FDA found it to be less than effective.
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Abbott Laboratories is the third pharmaceutical company to reach a settlement with the Department of Justice in excess of $1 billion. A look at the deals struck since Eli Lilly began the billion dollar club in 2009 shows the activities the government is investigating and the level of liability that companies face.
The $17 million settlement resolves a False Claims Act suit alleging KV’s Ethex subsidiary illegally received reimbursement for two unapproved drugs; at least three other companies have previously settled with the government.
Lawsuit alleges Schwarz failed to advise CMS that two products, including the nitroglycerin patch Deponit, did not qualify for federal reimbursement.