Pharmacia Is First Manufacturer Busted For Receiving Kickbacks From A PBM
Executive Summary
Pfizer subsidiary Pharmacia & Upjohn Company Inc. pleaded guilty to violating the Anti-Kickback Act, marking the first settlement by a manufacturer with prosecutors over excessive payments on a distribution contract with a pharmacy benefit manger
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Whistleblower suit against Pfizer reinstated
The U.S. Court of Appeals for the First Circuit rules Nov. 15 that Peter Rost, a former Pharmacia marketing exec, can amend his complaint against Pfizer alleging misconduct in the off-label marketing of the human growth hormone Genotropin. A lower court had granted Pfizer's motion to dismiss the suit on the grounds that it failed to specify details of the alleged fraud. The appeals court also rejects Pfizer's argument that its self-disclosure of potential misconduct barred a False Claims Act suit. "A 'public disclosure' requires that there be some act of disclosure to the public outside of the government," the court states. Pfizer, which acquired Pharmacia in 2003, pled guilty to violating the anti-kickback statute and paid the government $34.7 million to resolve federal investigations (1"The Pink Sheet" April 9, 2007, p. 3)...