The fines involved the marketing of drugs including pain pill Lyrica, antibiotic Zyvox, and schizophrenia treatment Geodon.
(Jb Reed/Bloomberg News)
Pfizer to pay record $2.3b penalty over promotions
Marketing of 13 drugs scrutinized
The fines involved the marketing of drugs including pain pill Lyrica, antibiotic Zyvox, and schizophrenia treatment Geodon.
(Jb Reed/Bloomberg News)
WASHINGTON - Federal prosecutors hit Pfizer Inc. with a record-breaking $2.3 billion in fines yesterday and called the world’s largest drug maker a repeating corporate cheat for illegal drug promotions that plied doctors with free golf, massages, and resort junkets.
Announcing the penalty as a warning to all drug manufacturers, Justice Department officials said the overall settlement is the largest ever paid by a drug company for alleged violations of federal drug rules, and the $1.2 billion criminal fine is the largest ever in any US criminal case. The total includes $1 billion in civil penalties and a $100 million criminal forfeiture.
Authorities called Pfizer a repeat offender, noting it is the company’s fourth such settlement of government charges in the last decade. The allegations surround the marketing of 13 drugs, including big sellers such as Viagra, Zoloft, and Lipitor.
As part of its illegal marketing, Pfizer invited doctors to consultant meetings at resort locations, paying their expenses and providing perks, prosecutors said.
“They were entertained with golf, massages, and other activities,’’ said Mike Loucks, the US attorney in Massachusetts.
Loucks said that even as Pfizer was negotiating deals on past misconduct, they were continuing to violate the very same laws with other drugs.
Pfizer’s top lawyer, Amy Schulman, said the settlements “bring final closure to significant legal matters and help to enhance our focus on what we do best - discovering, developing and delivering innovative medicines.’’
In her statement, Schulman said: “We regret certain actions taken in the past, but are proud of the action we’ve taken to strengthen our internal controls and pioneer new procedures.’’
In financial filings in January, the company had indicated that it would pay $2.3 billion over the allegations.
To prevent backsliding this time, Pfizer’s conduct will be specially monitored by the Department of Health and Human Services inspector general for five years.
In an unusual twist, the head of the Justice Department, Attorney General Eric Holder, did not participate in the record settlement, because he had represented Pfizer on these issues while in private practice. Associate Attorney General Thomas Perrelli said the settlement illustrates ways the Justice Department “can help the American public at a time when budgets are tight and health care costs are rising.’’
Perrelli announced the settlement terms at a news conference with federal prosecutors and FBI and Department of Health and Human Services officials.
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