Drug company pays for fraud

Published: Sunday, April 10 2005 12:00 a.m. MDT

Utah has received a $1.1 million check from the Warner-Lambert Co. to settle Medicaid fraud allegations.

The settlement involves allegations that Warner-Lambert illegally promoted the drug Neurontin for conditions that were not approved by the U.S. Food and Drug Administration.

The FDA has approved Neurontin for treating seizures and for postherpetic neuralgia (PHN), a painful condition that lasts one to three months after shingles are healed.

"This conduct is outrageous and shows the company was more concerned about profits than the health of its customers," said Utah Attorney General Mark Shurtleff.

The Utah Medicaid Fraud Unit of the Attorney General's Office alleged that Warner-Lambert:

  • Failed to perform the required FDA testing to use the drug for other conditions.

  • Illegally paid doctors and others to promote Neurontin for other "off-label" uses.

  • Made false statements in presentations and literature for doctors about FDA approval and the safety of the drug.

  • Illegally billed Medicaid programs from 1995 to 2001.

On May 13, 2004, the Warner-Lambert Co., which merged with Pfizer in 2000, pleaded guilty to two federal charges for distributing an unapproved drug and misbranding the drug.

The public can learn more about Medicaid fraud or report abuse at attorneygeneral.utah.gov/medicaidfraud.htm or call 1-800-244-4636.

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