Cephalon settles federal, state investigations

Cephalon Inc said today that it has finalized a previously announced agreement with government regulators over its drug sales and promotional practices.

The investigations began in 2004 and involved three of the company's products -- the painkiller Actiq, sleep drug Provigil and epilepsy drug Gabitril.

Under the previously disclosed terms of the federal settlement, Cephalon will pay the $425 million reserved in 2007 plus an estimated $12 million in accrued interest expense. It will plead guilty to a single misdemeanor violation of the U.S. Food, Drug and Cosmetic Act.

Cephalon also settled its two outstanding state government investigations for a total of $6.85 million. In its settlement with the Connecticut Attorney General and Commissioner of Consumer Protection, Cephalon agreed to a $6.15 million payment. It also agreed to a payment of $700,000 to settle an investigation with the Attorney General of the Commonwealth of Massachusetts. (AP)