Drug manufacturer ordered to pay $125 million for fraud

Nicholas Leider | | Health Exec | Management

A federal judge in Boston ordered Warner Chilcott to pay $125 million to resolve criminal and civil claims related to healthcare fraud. The sentenced was delivered April 15, six months after the former pharmaceutical company pleaded guilty in connection to illegally marketing its drugs, including Actonel, Asacol and Enablex.

Between 2009 and 2013, Warner Chilcott employees provided payments and complimentary meals to doctors to encourage them to prescribe the company’s drugs. The company was purchased by Actavis PLC in 2013 and renamed Allergan Inc.

W. Carl Reichel, former Warner Chilcott president, was indicted in October 2015 on charges of conspiring to pay kickbacks to doctors. He denies the allegations.

""
Nicholas Leider, Managing Editor

Nicholas joined TriMed in 2016 as the managing editor of the Chicago office. After receiving his master’s from Roosevelt University, he worked in various writing/editing roles for magazines ranging in topic from billiards to metallurgy. Currently on Chicago’s north side, Nicholas keeps busy by running, reading and talking to his two cats.

Related Content

Q&A: Proposed changes to Social Security Act would recognize pharmacists as healthcare providers
FDA issues Class I recall on counterfeit infusion pump batteries
FDA issues alert on PCNL sheath safety after patient death
Bipartisan bills in Congress would force insurance companies, PBMs to sell pharmacies
Anthem BCBS reverses course on anesthesia time limits
FDA issues Class I recall on insulin syringes due to risk of death

Around the web

Cardiovascular Business
FDA says years-long tirzepatide shortage is resolved, will give limited leeway to compounders

The tirzepatide shortage that first began in 2022 has been resolved. Drug companies distributing compounded versions of the popular drug now have two to three more months to distribute their remaining supply.

AI in Healthcare
From Capitol Hill to a hospital near you? 5 federal recommendations for healthcare AI policy

The 24 members of the House Task Force on AI—12 reps from each party—have posted a 253-page report detailing their bipartisan vision for encouraging innovation while minimizing risks. 

Cardiovascular Business
Merck spends up to $2B to license new weight loss drug with potential heart benefits

Merck sent Hansoh Pharma, a Chinese biopharmaceutical company, an upfront payment of $112 million to license a new investigational GLP-1 receptor agonist. There could be many more payments to come if certain milestones are met.