Austin Business Journal by Sarah Drake, Web Editor
Date: Tuesday, October 30, 2012
The Texas Attorney General’s office has come to a $19.9 million agreement with Swiss pharmaceutical drug company Novartis over the alleged deceptive marketing of a topical skin cream product, resolving civil Medicaid fraud enforcement action.
The state’s investigation found that Novartis unlawfully marketed Elidel, an eczema drug meant to treat infant children, while failing to disclose the drug’s harmful side effects which included cancer-related risks, state officials said in a Tuesday news release.
The drug company improperly urged physicians to prescribe Elidel for purposes that were not approved by the U.S. Food and Drug Administration, state officials said in the release.
According to the Texas Attorney General’s office, the Texas Medicaid program overpaid for Elidel prescriptions because of Novartis’ misrepresentations.
Under the agreement, Novartis must pay $6.6 million to the state of Texas. The federal government and and the relator-whistleblower who uncovered the alleged conduct and reported it to authorities will also get a share of the settlement.
http://www.bizjournals.com/austin/news/2012/10/30/texas-secures-199m-novartis.html