Bristol-Myers will pay $515 million

Bristol-Myers Squibb Co. and a subsidiary have agreed to pay more than $515 million to settle federal and state investigations into their drug marketing and pricing practices, U.S. Attorney Michael J. Sullivan announced today in Boston.

Government investigators alleged that Bristol-Myers Squibb paid illegal remuneration from 2000 to 2003 in the form of consulting fees to induce doctors and other health care providers to buy the company's drugs.

Investigators also claimed that from 2002 to 2005, the New York-based drug maker promoted the sale of Abilify, an anti-psychotic drug, for pediatric use and to treat dementia-related psychoses. Neither use is approved by the U.S. Food and Drug Administration.

Abilify is used to treat bipolar disorder and schizophrenia.

In the second quarter, the company reported $412 million in sales of Abilify, a 27 percent increase from a year earlier.

Bristol-Myers announced in December that it had tentatively agreed with the U.S. Attorney's Office in Boston to settle an investigation into its marketing activities. At that time, the company did not disclose which drugs were involved.

Besides Abilify, Bristol-Myers Squibb makes Plavix, a blood thinner that is the company's top-selling drug, and Pravachol, a cholesterol-lowering drug. (AP)